03/08/2018 | Press release | Distributed by Public on 03/08/2018 16:43
KBRA Affirms All Classes of COMM 2016-DC2
NEW YORK, NY (March 8, 2018) - Kroll Bond Rating Agency (KBRA) affirmed its outstanding ratings for all classes of COMM 2016-DC2, a $796.6 million CMBS conduit transaction collateralized by 64 mortgage loans secured by 91 properties. The affirmations follow a full surveillance review of the transaction, which has demonstrated stable credit metrics since last review.
The transaction's weighted average (WA) KBRA Loan-To-Value (KLTV) of 107.3% has increased from 105.2% at last review and 105.7% at issuance. The KBRA Debt Service Coverage (KDSC) of 1.49x has decreased from 1.53x at last review and issuance. At the time of this review, there are no delinquent or specially serviced loans, however, four loans (8.6%) are on the master servicer's watchlist, including one loan (5.0%) that has been identified as a KBRA Loan of Concern (K-LOC). K-LOCs consist of specially serviced and real estate owned (REO) assets as well as non-specially serviced loans in default or at heightened risk of default in the near term. The top 10 loans by balance, which represent 52.2% of the pool, have posted stable performance and have maintained a KBRA Performance Outlook (KPO) of Perform except for Columbus Park Crossing (5.0%), which received a KPO adjustment from Perform to Underperform and has been identified as a K-LOC.
To facilitate its review, KBRA reviewed and utilized the most recent property financial information made available by the master servicer. Of this information, December 2017 data was available for 11 loans (18.2% of the pool balance), September 2017 data was available for 50 loans (80.4%), July 2017 data was available for one loan (0.6%) and June 2017 data was available for two loans (0.8%). KBRA generally utilized 12 months of financial information to determine KBRA Net Cash Flow (KNCF). The review resulted in the affirmation of all of the transaction's outstanding ratings. For complete details on our analysis, please refer to the surveillance report, as well as links to the publications below.
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction's representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA's disclosure for this transaction can be found in the report available here.
Related Publications: (available at www.kbra.com)
Ryan Hoer, Associate (215) 882-5863 [email protected]
Praveen Pallapothula, Associate (646) 731-3361 [email protected]
William Petersen, Managing Director (215) 882-5861 [email protected]
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.