KBRA Downgrades Four Ratings and Affirms All Other Ratings for Benchmark 2020-B16
31 Jan 2025 | New York
KBRA downgrades four ratings and affirms all other outstanding ratings for Benchmark 2020-B16, an $881.7 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which shows an increase in KBRA's estimated losses for two of the deal's five K-LOCs. The performance of the remainder of the loans has been mostly stable since last review.
As of the January 2025 remittance period, no loans are delinquent but one is performing and specially serviced (3.8%). KBRA identified five loans as K-LOCs (20.1%), including the specially serviced loan. Two of the K-LOCs (8.9%) have estimated losses. The K-LOCs include two top 10 loans (10.0%):
- 650 Madison Avenue (8th largest, 5.1%, 17.4% estimated loss severity)
- 181 West Madison (10th largest, 4.9%)
One other K-LOC has an estimated loss:
- 1019 Market (3.8%, 44.3% estimated loss severity)
The remaining two K-LOCs do not have estimated losses and represent 6.4% of the pool.
Excluding K-LOCs with estimated losses, the transaction's WA KLTV is 97.1%, compared to 98.7% at last review and 90.3% at securitization. The KDSC is 2.96x, compared to 2.92x at last review and securitization.
Details for the classes with rating changes are as follows:
- Class F to B- (sf) from BB- (sf)
- Class G to CCC (sf) from B- (sf)
- Class X-F to B- (sf) from BB- (sf)
- Class X-G to CCC (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.