KBRA Downgrades Four Ratings and Affirms All Other Ratings for UBS 2017-C5
17 Oct 2024 | New York
KBRA downgrades the rating of four classes of certificates and affirms all other outstanding ratings of UBS 2017-C5, a $602.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from five K-LOCs (14.9% of the pool balance), two of which are within the top 10 loans.
As of the September 2024 remittance report, there are three specially serviced loans (11.0% of the current pool balance), including one loan in foreclosure (4.6%), one delinquent loan (3.1%), and one current loan (3.3%). KBRA identified 10 K-LOCs (26.6%), which include the specially serviced loans. These include three top 10 loans:
- Delshah NYC Portfolio (5th largest, 4.7% of the pool balance, 31.4% estimated loss severity)
- 237 Park Avenue (6th largest, 4.2%)
- DoubleTree Wilmington (8th largest, 3.6%, 26.7%)
Three other K-LOCs have estimated losses:
- AHIP Northeast Portfolio III (3.2%, 26.3%)
- 50 Republic & 40 Marcus Drive (1.9%, 1.1%)
- Murrieta Plaza (1.6%, 0.8%)
The remaining four K-LOCs do not have estimated losses and represent 7.5% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 90.9%, compared to 92.4% at last review and 92.0% at securitization. The KDSC is 1.97x, compared to 2.01x at last review and 2.19x at issuance.
Details concerning the classes with ratings changes are as follows:
- Class D-RR to BBB- (sf) from BBB+ (sf)
- Class E-RR to BB- (sf) from BBB- (sf)
- Class F-RR to B- (sf) from BB- (sf)
- Class G-RR to CCC (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.