Press Release|CMBS
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KBRA Downgrades Four Ratings and Affirms All Other Ratings for AOTA 2015-1211

26 Mar 2025   |   New York

Contacts

KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for AOTA 2015-1211, a CMBS SASB transaction. The rating actions follow a surveillance review of the transaction. The downgrades are based on a decline in KNCF and KBRA value since KBRA’s 2024 review and securitization caused by a decrease in the property’s occupancy and higher operating expenses. KBRA also considered the loan’s impending maturity in August and the potential challenges the sponsor may face in refinancing the debt, as well as the elevated tenant rollover risk in 2027. We also considered the property’s high quality and its favorable location within the Plaza District submarket.

The transaction collateral is a non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in a 45-story, 1.9 million sf Class-A office building at 1211 Avenue of the Americas between 47th and 48th Streets in Manhattan. The 10-year interest-only loan has an outstanding balance of $1.0 billion ($531 per sf) as of March 2025 and matures in August 2025. The loan sponsors are Ivanhoé Cambridge Inc. and RXR.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $74.1 million and a value of $915.9 million ($470 per sf). The resulting in-trust KLTV is 113.0%, compared to 91.1% at last review and 82.0% at securitization. Based on the decline in occupancy and net cash flow, rollover exposure in 2027 and near-term refinance risk, KBRA identified the loan as a K-LOC and maintains its KPO of Underperform.

Details concerning the classes with rating changes are as follows:

  • Class B to A- (sf) from AA- (sf)
  • Class C to BBB- (sf) from A- (sf)
  • Class D to BB- (sf) from BBB- (sf)
  • Class E to B- (sf) from BB- (sf)

Note: This press release has been updated on March 29, 2025 following its initial publication on March 26, 2025 to correct an assumption that Fox Corporation is expected to downsize its space. The tenant is expected to remain in place; as a result KBRA performed an as-is cash flow and valuation analysis which is reflected herein in lieu of the prior stabilized analysis. No ratings were impacted as a result of this change.

To access ratings and relevant documents, click here.

Click here to view the report.

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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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