KBRA Affirms All Ratings for BACM 2016-UBS10
16 Apr 2024 | New York
KBRA affirms all of its outstanding ratings for BACM 2016-UBS10, a $575.4 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization, including an increase in estimated losses since last review. However, the magnitude of the changes does not warrant ratings adjustments at this time.
As of the March 2024 remittance period, there are three specially serviced assets (14.4% of the pool balance). KBRA identified seven K-LOCs (24.6%), three of which have estimated losses (14.4%). The K-LOCs include:
Three top 10 loans (18.3%):
- Belk Headquarters (2nd largest, 9.2%, 46.4% estimated loss severity)
- 2100 Ross (6th largest, 5.7%)
- Princeton Pike Corporate Center (9th largest, 3.5%, 28.6%)
One other K-LOC has an estimated loss:
- Burbank Retail Center (1.8% of the pool balance, 24.1%)
The remaining three K-LOCs do not have estimated losses and represent 4.5% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 100.1%, compared to 101.2% at last review and 101.0% at issuance. The KDSC is 1.45x, compared to 1.47x at last review and 1.56x at issuance.
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Methodologies
- CMBS: U.S. CMBS Property Evaluation Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- CMBS: U.S. CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: U.S. CMBS Multi-Borrower Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- ESG Global Rating Methodology