Press Release|CMBS
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KBRA Upgrades Two Ratings and Affirms All Other Ratings for UBS 2017-C2

8 May 2026   |   New York

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KBRA upgrades the ratings of two classes of certificates and affirms all other outstanding ratings of UBS 2017-C2, a $610.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited improved collateral performance since last review, with only two specially serviced loans (10.4% of the pool balance) and limited losses realized to date. The rating actions reflect the increased certificate C/E levels due to deleveraging from loan payoffs and amortization. Additionally, the pool benefits from the presence of 16 fully defeased loans (30 properties, 28.5%).

As of the April 2026 remittance period, there are two specially serviced assets (10.4%), one of which (5.6%) is in foreclosure. KBRA identified six K-LOCs (15.2%), including the specially serviced assets. Of the K-LOCs, one (4.8%) has an estimated loss. The K-LOCs are detailed in the following table.

Loss Given Default (000s) Loss Severity 6 85 Broad Street OF $34,000 5.6% Y C N Specially Serviced 05/27/2025 - - 5A11 Starwood Capital Group Hotel Portfolio LO $29,538 4.8% Y C Y Specially Serviced 03/25/2025 $7,985 27.0% 26 114 W Adams MF $10,367 1.7% N C N Occupancy 01/08/2026 - - 24 Sheraton - Orlando North LO $10,339 1.7% N C Y Low DSC 04/23/2026 - - 42 Autumn Ridge and Tompkins Green Apartments MF $4,952 0.8% N C N Occupancy 06/15/2021 - - 51 Comfort Inn & Suites Fayetteville LO $3,733 0.6% N C N DSCR 08/15/2023 - - Total K-LOCs $92,930 15.2% $7,985 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 K-LOCs 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-LOC with an estimated loss, the transaction’s WA KLTV is 83.7%, compared to 85.2% at last review and 91.0% at securitization. The KDSC is 2.03x, compared to 1.89x at last review and 2.18x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class B to AA+ (sf) from AA (sf)
  • Class C to A+ (sf) from (A) 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: 1014872