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KBRA Downgrades Four Ratings and Affirms All Other Ratings for WFCM 2016-C32

12 Dec 2025   |   New York

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KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for WFCM 2016-C32, a $389.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has been allocated losses from two liquidations since last review. Additionally, the transaction has exhibited an increase in estimated losses, primarily from the specially serviced 10 South LaSalle Street loan (7.7% of the pool balance). All remaining loans in the pool are scheduled to mature in the near term and the transaction has benefited from pool deleveraging from loan payoffs, amortization, and defeasance.

As of the November 2025 remittance period, there are four specially serviced assets (10.9%), including two loans (8.9%) that are over 90 days delinquent and one asset (0.9%) that is REO. KBRA identified 12 K-LOCs (29.0%), including the specially serviced assets. Of the K-LOCs, nine (23.2%) have estimated losses. The K-LOCs are depicted in the table below.

K-LOCs Loss Given Default (000s) Loss Severity 6 10 South LaSalle Street OF $30,000 7.7% Y 90+ N Specially Serviced 06/30/2021 $23,572 78.6% 11 Orlando Plaza Garage MH $17,400 4.5% N C N DSCR 03/14/2025 $6,355 36.5% 13 Wilshire Plaza RT $16,017 4.1% N C N Occupancy 01/14/2025 $1,335 8.3% 21 Hampton Inn Suites Ontario LO $10,337 2.7% N C Y Maturity 05/31/2025 - - 26 Sequoia Center Building 1400 OF $8,017 2.1% N C N Occupancy 08/03/2022 $1,717 21.4% 28 Seminole Orange Plaza Center RT $7,296 1.9% N NPM N Non-Performing Maturity 09/29/2025 - - 42 Midtown Market RT $4,888 1.3% N C N Occupancy 04/14/2025 - - 41 Carson Building MU $4,573 1.2% Y 90+ N Delinquent 07/24/2024 $3,138 68.6% 43 Hy-Vee Waterloo RT $4,364 1.1% Y C N Specially Serviced 05/31/2025 $1,969 45.1% 46 Roberts Crossing Shopping Center RT $4,168 1.1% N C N Tenant Issues 10/02/2024 $390 9.4% 61 Tops Plaza RT $3,325 0.9% Y REO N REO 09/13/2018 $728 21.9% 78 CVS Algonac RT $2,664 0.7% N C N Tenant Issues 08/25/2025 $992 37.3% Total K-LOCs $113,049 29.0% $40,198 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 89.8%, compared to 86.2% at last review and 96.0% at securitization. The KDSC is 2.02x, compared to 2.19x at last review and 2.36x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class E to B- (sf) from BB- (sf)
  • Class F to CCC (sf) from B- (sf)
  • Class X-E to B- (sf) from BB- (sf)
  • Class X-F to CCC (sf) from B- (sf)

To access ratings 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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