KBRA Downgrades Five Ratings and Affirms All Other Ratings for JPMDB 2017-C5

KBRA downgrades the ratings of five classes and affirms all other outstanding ratings for JPMDB 2017-C5, an $866.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on two of the K-LOCs (12.8% of the pool balance) and worsening pool performance since KBRA's last ratings change in November 2021 with six loans (41.5%) in the top ten identified as K-LOCs and another two loans (7.8%) assigned KPOs of Underperform.

As of the October 2024 remittance, there are two specially serviced loans (15.3%), including one REO Asset (9.2%). KBRA identified ten K-LOCs (50.3%), including the specially serviced assets. The K-LOCs include six (41.5%) of the top 10 loans, of which one (9.2%) has an estimated loss:

One additional K-LOC (3.5%) has an estimated loss:

The remaining three K-LOCs do not have estimated losses and represent 5.3% of the pool balance.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 98.2%, compared to 94.6% at last review and 96.8% at securitization. The KDSC is 1.78x, compared to 1.82x at last review and 1.87x at securitization.

Details concerning the classes with rating changes are as follows:

To access ratings and relevant documents, click here.

Click here to view the report.

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