KBRA Downgrades Six Ratings and Affirms All Other Ratings for BANK 2017-BNK9

KBRA downgrades the ratings of six classes of certificates and affirms all other ratings for BANK 2017-BNK9, an $875.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses primarily from two specially serviced K-LOCs (11.7% of the pool balance). The rating actions also consider the transaction deleveraging from loan payoffs, amortization and defeasance.

As of the November 2024 remittance period, there are two specially serviced assets (11.7%), of which one is REO (4.8%) and one (6.9%) is 30+ days delinquent. KBRA identified nine K-LOCs (21.2%), including the specially serviced assets. Of the K-LOCs, two top 10 assets (11.7%) have estimated losses. The K-LOCs include:

Three top 10 assets (15.0%):

Park Square (6th largest, 6.9% of the pool balance, 29.3% estimated loss severity)
BWI Airport Marriott (7th largest, 4.8%, 50.0%, REO)
Warwick Mall (9th largest, 3.3%)

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 99.3%, compared to 102.2% at last review and 100.7% at securitization. The KDSC is 1.96x, compared to 2.01x at last review and 2.02x at issuance.

Details concerning the classes with rating changes are as follows:

Class D to BB (sf) from BBB- (sf)
Class E to B (sf) from BB- (sf)
Class F to CCC (sf) from B- (sf)
Class X-D to BB (sf) from BBB- (sf)
Class X-E to B (sf) from BB- (sf)
Class X-F to CCC (sf) from B- (sf)

KBRA Downgrades Six Ratings and Affirms All Other Ratings for BANK 2017-BNK9

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