KBRA Affirms All Ratings for UBS 2017-C7
1 Nov 2024 | New York
KBRA affirms all of its outstanding ratings for UBS 2017-C7, a $735.3 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight worsening in pool performance since securitization, with an increase in estimated loses since last review, coupled with five of the top ten loans (30.4%) assigned KPOs of Underperform. However, the transaction has benefited across the capital stack from increased certificate C/E levels due to amortization and loan payoffs and the magnitude of the changes does not warrant rating changes at this time.
As of the October 2024 remittance period, there is one specially serviced loan (6.5% of the pool balance). KBRA identified five K-LOCs (18.4%), including the specially serviced loan, of which, two have estimated losses (7.6%). These include:
Two top 10 loans (15.0%)
- One State Street (largest, 8.5% of the pool balance)
- Tryad Business & Industrial Center (4th largest, 6.5%, 9.1% estimated loss severity)
One additional loan with an estimated loss:
- Murrieta Plaza (1.1%, 0.7%)
The remaining two K-LOCs (2.3%) do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 94.2%, compared to 97.4% at last review and 96.3% at securitization. The WA KDSC is 1.78x, compared to 1.87x at last review and 1.88x at securitization.
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