Press Release|CMBS
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KBRA Withdraws One Rating and Affirms All Other Ratings for COMM 2016-DC2

26 Sep 2025   |   New York

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KBRA withdraws the rating on the Class A-4 certificates following the reduction of the principal balance to zero during the September 2025 remittance period and affirms all other outstanding ratings for COMM 2016-DC2, a $488.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight increase in KBRA's estimated losses compared to last review. However, the magnitude of the changes does not warrant ratings adjustments at this time.

As of the September 2025 remittance period, there are two specially serviced assets (7.5%), one (1.3%) of which is REO. KBRA identified eight K-LOCs (40.8%), including the specially serviced assets. Of the K-LOCs, four (27.0%) have estimated losses. The KLOCs are depicted in the table below:

K-LOCs Loss Given Default (000s) Loss Severity 2 North Point Center East OF 57,516 11.8% N C N Occupancy 04/30/2024 $18,563 32.3% 4 Intercontinental Kansas City Hotel LO 37,776 7.7% N C Y DSCR 06/25/2024 $1,484 3.9% 6 Columbus Park Crossing RT 34,591 7.1% N C N DSCR 03/07/2017 - - 7 Promenade Gateway MU 30,000 6.1% Y C N Maturity 09/05/2025 $4,689 15.6% 13 Bowie Plaza RT 14,743 3.0% N C N Maturity 03/06/2025 - - 16 Coral Island Shopping Center RT 12,215 2.5% N C N Occupancy 03/04/2025 - - 30 Colony Square Atascadero RT 6,434 1.3% Y 90+ N REO 05/19/2020 $3,426 53.2% 28 Petsmart Sunnyvale RT 6,238 1.3% N C N Lease Rollover 12/08/2020 - - Total K-LOCs $199,513 40.8% $28,162 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 92.1%, compared to 96.2% at KBRA's last ratings change in September 2024, and 105.7% at securitization. The KDSC is 1.43x, compared to 1.50x at KBRA's last ratings change, and 1.53x securitization.

To access ratings and relevant documents, click here.

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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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