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KBRA Affirms All Ratings for WFCM 2017-C38

26 Jun 2026   |   New York

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KBRA affirms all outstanding ratings for WFCM 2017-C38, a $952.5 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight worsening in pool performance compared to last review including an increase in estimated losses; however, the magnitude of the changes does not warrant ratings adjustments at this time.

As of the June 2026 remittance period, there are three specially serviced loans (7.6%). KBRA identified ten K-LOCs (20.5%), including the specially serviced assets. Of the K-LOCs, five (12.6%) have estimated losses. The K-LOCs are depicted below:

Loss Given Default (000s) Loss Severity 6 225 & 233 Park Avenue South OF $45,000 4.7% N C Y Modification 09/21/2023 $15,586 34.6% 4 Starwood Capital Group Hotel Portfolio LO $35,038 3.7% Y C Y Specially Serviced 03/25/2025 $5,100 14.6% 9 Valley Creek Corporate Center OF $31,664 3.3% Y 30+ N Specially Serviced 03/13/2024 $7,573 23.9% 14 123 William Street OF $27,500 2.9% N C N Maturity 04/24/2026 - - 16 AmberGlen Corporate Center OF $20,000 2.1% N C N Occupancy 03/04/2026 - - 27 Crossings at Hobart RT $11,265 1.2% N C N DSCR 08/09/2024 - - 31 Alexander Hamilton Plaza OF $9,398 1.0% N C N Lease Rollover 03/03/2026 - - 39 41725 Ford Road RT $6,496 0.7% N C N DSCR 12/10/2025 - - 44 North Towne Commons RT $5,960 0.6% Y C N Specially Serviced 03/14/2023 $760 12.8% 68 Shoppes at Hunters Run RT $2,764 0.3% N C N Occupancy 06/09/2023 $515 18.7% Total K-LOCs $195,085 20.5% $29,535 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 K-LOCs with estimated losses, the transaction has a WA KLTV of 82.3%, as compared to 89.8% at KBRA’s last review and 90.0% at securitization. The KDSC is 2.15x, as compared to 2.12x at KBRA’s last review and 2.23x at securitization.

To access ratings and relevant documents, click here.

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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.

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