Press Release|CMBS

KBRA Upgrades Three Ratings and Affirms All Other Ratings for FREMF 2019-K97

19 Jul 2024   |   New York

Contacts

KBRA upgrades the ratings of three classes and affirms all other outstanding ratings for FREMF 2019-K97, a $1.5 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation's (Freddie Mac) K-Deal program. The rating actions follow a surveillance review of the transaction, which has exhibited an improvement in pool performance compared to securitization.

As of the June 2024 remittance period, there are no delinquent or specially serviced loans. However, two loans (1.8% of the pool balance) have been identified as K-LOCs, neither of which are within the top 10 or have estimated losses.

The transaction's WA KLTV is 104.9%, compared to 109.1% at last review and 116.5% at securitization. The KDSC is 1.52x, compared to 1.46x at last review and 1.38x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class A-M to AA (sf) from AA- (sf)
  • Class B to A (sf) from A- (sf)
  • Class C to BBB+ (sf) from BBB (sf)

To access rating and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1005130

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