KBRA Downgrades Two Ratings and Affirms All Other Ratings for UBS 2017-C1
1 May 2025 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings of UBS 2017-C1, a $666.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA's last ratings change in March 2024. The ratings actions also consider the transaction deleveraging from loan payoffs, amortization, and defeasance.
As of the April 2025 remittance period, there are three specially serviced assets (3.8%), each of which are REO. KBRA identified nine K-LOCs (18.1%), including the specially serviced assets. Of the K-LOCs, four (8.3%) have estimated losses. These include:
Two top 10 loans:
- One West 34th Street (5th largest, 4.5%, 47.5% estimated loss severity)
- Baypoint Commerce Center (6th largest, 4.1%)
Three other K-LOCs (5.6%) have estimated losses:
- Boston Creek Apartments (2.2%, 58.3%, REO)
- La Quinta Inns & Suites Harrisburg Hershey (0.8%, 98.6%, REO)
- Fairfield Inn & Suites Milford (0.8%, 12.9%, REO)
The remaining four K-LOCs do not have estimated losses and represent 5.7% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 85.3%, compared to 90.2% at KBRA's last ratings change and 95.1% at securitization. The KDSC is 1.71x, compared to 1.69x at KBRA's last ratings change and 1.79x at securitization.
Details concerning the ratings adjustments are as follows:
- Class D to BBB (sf) from A- (sf)
- Class D-RR to CCC (sf) from B- (sf)
To access ratings and relevant documents, click here.
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