KBRA Downgrades Three Ratings of MSC 2012-C4; Withdraws All Ratings

KBRA downgrades the ratings of Classes E, F, and G to D (sf) for MSC 2012-C4, a CMBS conduit transaction, following realized losses taken against their respective outstanding principal balances. The losses were caused by the liquidation of the Shoppes at Buckland Hills loan ($130.0 million loan balance at securitization), as reflected in the April 2025 remittance report. The asset incurred a loss of $90.5 million (69.7% loss severity). Immediately following the downgrades, the ratings are being withdrawn due to the reduction to zero of the principle balances of all rated classes. Concurrently, the BB- (sf) rating on Class D is being withdrawn following the full repayment of the security without a principal loss.

The Shoppes at Buckland Hills, which was a non-performing matured asset, was liquidated for $24.9 million in April 2025. However, liquidation expenses totaled $13.7 million, including fees, expenses and repayment of advances, resulting in $11.2 million in net proceeds. An appraisal dated December 2024 valued the property as-is at $22.0 million, which was 88.4% below the $189.0 million appraised value at issuance. The asset was collateralized by a 535,235 sf portion of a two-level regional mall located in Manchester, Connecticut, ten miles northeast of the Hartford CBD.

The transaction suffered $104.2 million in cumulative principal losses. The realized losses reduced the principal balances of Classes E, F, and G to zero. In addition to the liquidation of the Shoppes at Buckland Hills, the transaction had incurred adjusted losses from the disposition of two previously specially serviced assets, Hilton Springfield ($5.8 million, July 2021) and Independence Place – Fort Campbell ($7.9 million, February 2017), which resulted in loss severities of 22.4% and 37.8%, respectively.

Rating actions prior to their withdrawal:

Ratings withdrawn:

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