KBRA Places JPMDB 2016-C2 CMBS Classes on Watch Downgrade

KBRA places the ratings of three classes of JPMDB 2016-C2, a CMBS conduit transaction, on Watch Downgrade. The Watch placements are based on an increase in interest shortfalls and concentration of specially serviced assets and K-LOCs. Currently, interest shortfalls are affecting up to and including the Class D certificates. KBRA considered the likelihood of interest shortfalls continuing during the resolution of the specially serviced assets. As of the January 2026 remittance period, 17 non-defeased assets remain in the pool, eight of which (59.1% of pool balance) have been identified as K-LOCs. Of the remaining assets, three (21.7%) are 90+ days delinquent. The 100 East Pratt (10.8%) and DoubleTree Houston Intercontinental Airport (7.4%) loans were deemed non-recoverable by the servicer in January 2026, which is driving interest shortfalls higher in the capital structure. KBRA will continue to monitor the transaction and the underlying loans' performance and will seek to resolve or update the Watch Downgrade status within 90 days. Details concerning the classes that have been placed on Watch are as follows: