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KBRA Downgrades Two Ratings and Affirms All Other Ratings for MSC 2019-H7

11 Jul 2025   |   New York

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KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for MSC 2019-H7, a $690.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization, including an increase in the number of loans identified as K-LOCs, seven of which (11.0%) have estimated losses.

As of the June 2025 remittance report, there are two specially serviced assets (2.6% of the pool balance), one of which is 90+ days delinquent (1.8%), and the other is REO (0.9%). KBRA identified 14 K-LOCs (25.1%), including the specially serviced assets. Of the K-LOCs, seven (11.0%) have an estimated loss. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 8 North Carolina Technical Park IN $22,886 3.3% N C N Occupancy 09/12/2024 - - 10 Wheatland Towne Crossing RT $21,250 3.1% N C N Tenant Issues 01/08/2025 - - 15 UES Multi Portfolio MU $15,900 2.3% N C N DSCR 05/05/2020 $1,600 10.1% 13 DoubleTree Princeton LO $14,521 2.1% N C Y DSCR 05/05/2020 - - 17 3 Independence Way OF $13,487 2.0% N C N DSCR 09/13/2023 $5,488 40.7% 18 Legacy Tower OF $13,327 1.9% N C N IO Expiration 08/15/2023 $4,920 36.9% 21 1458 Ocean Dr / 1437 Collins Ave RT $12,200 1.8% Y 90 Y Specially Serviced 05/13/2020 - - 22 Eleven Seventeen Perimeter OF $12,000 1.7% N C N Occupancy 07/21/2023 $1,173 9.8% 29 AC by Marriott San Jose LO $10,000 1.4% N C Y DSCR 10/05/2020 - - 27 Cassens Business Center IN $9,429 1.4% N C N Tenant Issues 05/06/2025 $2,579 27.3% 33 Brooklyn Multifamily Portfolio I MU $9,200 1.3% N C N DSCR 08/13/2020 - - 36 Best Western Plus South Bay Hotel LO $8,146 1.2% N C N DSCR 06/26/2025 - - 42 Greenwood Heights IN $5,978 0.9% Y REO N REO 05/05/2020 $5,046 84.4% 47 3115 Fry Road IN $5,265 0.8% N C N DSCR 03/27/2025 $2,177 41.3% Total K-LOCs $173,591 25.1% $22,982 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 K-LOCs 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 89.1%, compared to 97.5% at last review and 98.3% at securitization. The KDSC is 1.98x, compared to 1.89x at last review and 1.88x at securitization.

Details for the classes with rating changes are as follows:

  • Class F-RR to BB- (sf) from BB (sf)
  • Class G-RR to B (sf) from B+ (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

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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.

Doc ID: 1010316

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