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KBRA Upgrades Two Ratings and Affirms All Other Outstanding Ratings for CD 2017-CD5

10 Jul 2026   |   New York

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KBRA upgrades the ratings of two classes of certificates and affirms all other outstanding ratings for CD 2017-CD5, a $741.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an improvement in credit enhancement levels due to amortization and principal paydowns. Additionally, the pool benefits from the defeasance of ten loans totaling $106.1 million (16 properties, 14.3% of the pool balance). However, the pool exhibited a slight worsening in pool performance compared to last review due to an increase in the number of loans identified as K-LOCs. Despite the increase, KBRA's loss estimate for the pool has not changed meaningfully since last review and the pool has a low exposure to specially serviced loans.

As of the June 2026 remittance period, there are two specially serviced loans (4.6%). KBRA identified five K-LOCs (12.0%), including the specially serviced assets. Of the K-LOCs, four (11.2%) have estimated losses. The K-LOCs are detailed in the following table.

Loss Given Default (000s) Loss Severity 5 Starwood Capital Group Hotel Portfolio LO $28,031 3.8% N C Y Modification 03/25/2025 $4,080 14.6% 13 Town Square Plaza RT $19,143 2.6% N C N Maturity 04/08/2026 $743 3.9% 17 Gurnee Mills RT $18,743 2.5% N C Y Lease Rollover 06/30/2025 $2,735 14.6% 19 444 Spear OF $17,000 2.3% N C N Occupancy 11/03/2025 $300 1.8% 39 1566 Third Avenue MU $6,000 0.8% N 30+ Y Delinquent / Occupancy 07/09/2020 - - Total K-LOCs $88,916 12.0% $7,859 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-LOCs with estimated losses, the transaction’s WA KLTV is 74.4%, compared to 84.3% at last review and 92.2% at securitization. The KDSC is 2.24x, compared to 2.16x at last review and 2.06x 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: 1015925