KBRA Upgrades One Rating and Affirms All Other Ratings for FREMF 2017-K62
21 Feb 2025 | New York
KBRA upgrades the rating of one class of certificates and affirms all other outstanding ratings for FREMF 2017-K62, a $1.3 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation's (Freddie Mac) K-Deal program. The ratings actions follow a surveillance review of the transaction, which has exhibited an improvement in pool performance since KBRA’s last ratings change in August 2022. In addition, the rating actions reflect transaction deleveraging from loan defeasances and amortization.
As of the January 2025 remittance period, there are no delinquent or specially serviced loans. KBRA identified eight K-LOCs (12.3% of the pool balance). These include two top 10 loans:
- Santana Ridge (4th largest, 3.4%)
- Preston Place (8th largest, 2.5%)
Three additional K-LOCs with losses:
- Pine Ridge of Plumbrook (1.1%, 16.3% estimated loss severity)
- Villa Del Coronado (0.8%, 14.0%)
- University Park Apartments (0.7%, 13.4%)
The remaining three K-LOCs do not have estimated losses and represent 3.7% of the pool.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 97.8%, compared to 115.9% at last ratings change and 119.8% at securitization. The KDSC is 1.57x, compared to 1.37x at last ratings change and 1.34x at securitization.
Details concerning the class with a rating change are as follows:
- Class A-M to AA+ (sf) from AA (sf)
To access ratings and relevant documents, click here.
Click here to view the report.