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KBRA Downgrades Five Ratings and Affirms All Other Ratings for CGCMT 2016-P5

31 Jul 2025   |   New York

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KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for CGCMT 2016-P5, a $737.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA's last ratings change in August 2024. The transaction, however, has benefited from deleveraging due to principal paydowns and defeasance, particularly at the top of the capital structure.

As of the July 2025 remittance period, there are four specially serviced loans (12.2%), of which three (9.2%) are in foreclosure. KBRA identified 13 K-LOCs (45.2%), including the specially serviced assets. The K-LOCs are depicted in the table below:

K-LOCs Loss Given Default (000s) Loss Severity 01A1 Hyatt Regency Jersey City LO $65,000 8.8% N C Y Occupancy 09/03/2024 - - 02A2 Plaza America I & II OF $60,000 8.1% N C N Occupancy 08/14/2024 $19,912 33.2% 06A2 Crocker Park Phase One & Two MU $37,595 5.1% N C Y DSCR 06/08/2020 - - 05A1 College Boulevard Portfolio OF $33,557 4.6% N C N DSCR 05/02/2023 $3,981 11.9% 10 332 South Michigan OF $29,339 4.0% Y FCL N Foreclosure 10/01/2020 $23,779 81.0% 12A2 Esplanade I OF $22,397 3.0% Y C N Specially Serviced 05/23/2023 $9,652 43.1% 18 11 East Broadway MU $19,250 2.6% Y FCL Y Foreclosure 02/04/2021 $12,809 66.5% 15A2 National Business Park OF $18,916 2.6% Y FCL N Foreclosure 11/29/2022 $4,974 26.3% 21 Financial Plaza OF $13,386 1.8% N C N Bankruptcy 07/08/2020 - - 25A3 West LA Office - 1950 Sawtelle Boulevard OF $11,429 1.6% N C N Occupancy 08/23/2021 $2,932 25.7% 26 Hilton Garden Inn Layton LO $10,611 1.4% N C Y Recent Delinquency 02/26/2025 - - 33 Hunter's Ridge Apartments MF $7,541 1.0% N C N DSCR 10/23/2024 $4,044 53.6% 45 Union Square Shopping Center RT $4,348 0.6% N C N Tenant Issues 08/06/2024 $1,026 23.6% Total K-LOCs $333,368 45.2% $83,107 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 112.0%, compared to 106.1% at KBRA's last ratings change in August 2024 and 98.4% at securitization. The WA KDSC is 1.80x, down from 1.86 at KBRA's last ratings change and 1.99x at issuance.

Details concerning the classes with rating changes are as follows:

  • Class C to BBB- (sf) from A- (sf)
  • Class D to CCC (sf) from BB (sf)
  • Class E to CC (sf) from B- (sf)
  • Class F to C (sf) from CCC (sf)
  • Class X-D to CCC (sf) from BB (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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