Press Release|CMBS
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KBRA Downgrades All Ratings for BBSG 2016-MRP

3 Apr 2026   |   New York

Contacts

KBRA downgrades all ratings for BBSG 2016-MRP, a CMBS SASB transaction. The downgrades follow a surveillance review of the transaction and reflect the continued decline in KNCF and KBRA value since KBRA’s last rating adjustments in April 2024. The rating changes also reflect the ongoing financial challenges facing many mid-tier regional shopping malls and the difficulty the borrower may face refinancing the existing loan in June 2026 without additional equity.

The transaction collateral is a $162.0 million portion of a $262.0 million non-recourse, first-lien mortgage loan collateralized by the borrower’s fee simple and leasehold interests in 540,867 sf of The Mall at Rockingham Park (MRP), a 1.0 million sf super-regional mall in Salem, New Hampshire. The whole mortgage loan consists of four pari passu senior A notes totaling $142.5 million and two subordinate B notes totaling $119.5 million. The trust collateral includes two senior A-notes totaling $42.5 million and the subordinate B-notes. The loan matures on June 1, 2026. According to the servicer, the sponsors are currently pursuing a refinancing of the collateral.

The loan sponsors are Mayflower Realty, LLC and Institutional Mall Investors. Mayflower Realty is a joint venture between Simon Property Group, L.P. (28.2% ownership) and Canadian Pension Plan. Institutional Mall Investors is a venture between California Public Employees' Retirement System (CalPERS) and an affiliate of Miller Capital Advisory, Inc.

The review utilized information obtained from the trustee and servicer to analyze the loan collateral. The analysis resulted in a KNCF of $15.1 million, down from $15.8 million at the prior review, and a KBRA value of $149.3 million ($276 per sf). The in-trust KLTV is 175.5%, up from 166.0% at last review and 83.8% at securitization. The high KLTV along with a low KBRA debt yield indicate it will be challenging for the borrower to refinance the existing loan without additional equity and that a loan default and asset disposition could result in a significant loss to the trust. KBRA maintains the loan’s K-LOC designation.

Details concerning the classes with ratings changes are as follows:

  • Class A to BBB- (sf) from A (sf)
  • Class X to BBB- (sf) from A (sf)
  • Class B to B (sf) from BB (sf)
  • Class C to B- (sf) from B (sf)
  • Class D to CCC (sf) from B- (sf)
  • Class E to CC (sf) from CCC (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

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: 1014292