KBRA Downgrades Four Ratings and Affirms All Other Ratings for Benchmark 2020-B17
7 Mar 2025 | New York
KBRA downgrades the ratings of four classes and affirms all other outstanding ratings of Benchmark 2020-B17, an $849.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on three of the K-LOCs (11.6% of the pool balance). The ratings actions also consider the transaction's capital structure which has benefitted from deleveraging through loan payoffs and amortization.
As of the February 2025 remittance period, there are four specially serviced assets (14.5%), one of which (2.2%) is delinquent. KBRA identified five K-LOCs (20.4%), including the specially serviced assets, of which, three (11.6%) have an estimated loss. These include:
Two top 10 loans (11.8%):
- 650 Madison Avenue (4th largest, 5.9% of the pool balance, 17.5% estimated loss severity)
- Apollo Education Group HQ Campus (6th largest, 5.9%)
Two additional loans (5.4%) have an estimated loss:
- 3000 Post Oak (3.5%, 93.3%)
- 25 Jay Street (2.2%, 19.5%)
The remaining K-LOC does not have an estimated loss and represents 2.9% of the pool balance.
Excluding the K-LOCs with an estimated loss, the transaction's WA KLTV is 91.5%, compared to 96.9% at last review and 88.3% at securitization. The KDSC is 2.85x, compared to 2.84x at last review and 2.94x at securitization.
Details concerning the classes with rating changes are as follows:
- Class E to B- (sf) from BBB- (sf)
- Class F-RR to CCC (sf) from BB- (sf)
- Class G-RR to CC (sf) from B- (sf)
- Class X-D to B- (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.