KBRA Downgrades Two Ratings and Affirms All Other Ratings for BANK 2017-BNK8
7 Nov 2024 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for BANK 2017-BNK8, a $976.2 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from two top 10 K-LOCs (16.9% of the pool balance). The rating actions also reflect the transaction’s deleveraging from loan payoffs, amortization and defeasance.
As of the October 2024 remittance period, there is one (10.2%) specially serviced loan and one (0.1%) loan which is 30+ days delinquent. KBRA identified seven K-LOCs (19.1%), including the specially serviced and delinquent loans. This includes:
Two of the top 10 loans (16.8%):
- Park Square (largest, 10.2% of the pool balance, 28.9% estimated loss severity)
- DHG Greater Boston Hotel Portfolio (6th largest, 6.6%, 10.7%)
The remaining five K-LOCs represent 2.3% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 96.8%, which compares to 105.5% at last review and 95.2% at securitization. The KDSC is 2.23x, which compares to 2.30x at last review and to 2.33x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D to BB (sf) from BBB- (sf)
- Class X-D to BB (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.