KBRA withdraws ratings on 47 classes across 28 U.S. structured finance transactions
Several U.S. structured finance securities are reaching the end of their rated life as their principal or notional balances fall to zero. The withdrawals cover 47 classes from 28 transactions, with September 2026 remittance reports showing no accumulated interest shortfalls or principal writedowns except for a $13,440,321 loss on MSBAM 2014-C18 Class F certificates.
Highlights
- KBRA withdrew ratings on 47 classes from 28 U.S. structured finance deals, including BANK, Benchmark, FREMF, JPMCC, MSBAM, and UBS, after principal or notional balances fell to zero.
- Withdrawals span new and legacy CMBS deals, with classes such as FirstKey Homes 2021-SFR2 and WFCM 2015-NXS2 losing ratings ranging from AAA (sf) to B+ (sf).
- Remittance reports show no shortfalls or writedowns for most affected classes, except for a $13,440,321 loss on MSBAM 2014-C18 Class F certificates.
September 2026 withdrawals across multiple deals
As reported by KBRA, citing Kroll Bond Rating Agency, the rating withdrawals apply after the affected classes' principal or notional balances are reduced to zero, prompting the agency to move each rating to WR (sf). The actions span a broad set of commercial mortgage-backed securities and related structured finance transactions, including deals from BANK, Benchmark, BMO, FREMF, GSMS, JPMCC, JPMDB, MSBAM, MSC, UBS and WFCM.The update also includes multiple classes from FirstKey Homes 2021-SFR2, where ratings ranging from AAA (sf) down to B+ (sf) are withdrawn. Other affected transactions include recent issues such as BANK 2022-BNK40 and Benchmark 2023-B38, as well as older vintages including WFCM 2015-NXS2, FREMF 2016-K58 and MSBAM 2013-C12.
Credit impact remains limited except one noted loss
KBRA says the related September 2026 remittance reports do not reflect any accumulated interest shortfalls or principal writedowns for the withdrawn classes, apart from one exception. That exception is a $13,440,321 loss tied to the Class F certificates of the MSBAM 2014-C18 transaction.For investors, the withdrawals primarily indicate that the relevant classes have paid down or otherwise reached a zero-balance status rather than signaling fresh rating deterioration across the group. Even so, the loss recorded on MSBAM 2014-C18 stands out within the latest batch of actions and highlights that legacy CMBS exposures can still produce isolated credit events as transactions wind down.
We previously covered the withdrawal of expected ratings and rating outlooks for the planned BDS 2026-FL19 LLC notes after the transaction was no longer expected to proceed. In that case, the preliminary tranche-level assessments were removed and the related presale coverage was pulled, illustrating how ratings tied to a deal can be reversed before issuance when execution plans change.
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