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KBRA Downgrades Six Ratings and Affirms All Other Ratings for CD 2017-CD3

9 Jan 2026   |   New York

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KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings of CD 2017-CD3, a $1.0 billion CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in realized losses and KBRA's estimated losses since the last ratings change in January 2025.

As of the December 2025 remittance period, there are three specially serviced assets (8.6% of the pool balance), all of which are in foreclosure. KBRA identified 16 K-LOCs (50.3%), including the specially serviced assets. Of the K-LOCs, ten (38.9%) have estimated losses. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 2 1384 Broadway OF $88,000 8.7% N C N DSCR 09/26/2022 $17,846 20.3% 7 111 Livingston Street OF $67,000 6.6% N C N Lease Rollover 02/27/2023 $16,268 24.3% 6 Moffett Place Google OF $65,770 6.5% N C N Lease Rollover 12/10/2025 - - 5 Prudential Plaza OF $65,032 6.4% N C Y Modification 06/23/2023 $6,974 10.7% 12 Summit Place Wisconsin OF $36,099 3.6% N C N DSCR 10/05/2023 $5,876 16.3% 15 16 E 40th Street OF $31,500 3.1% Y 90+ N Foreclosure 05/18/2022 $18,805 59.7% 17 681 Fifth Avenue MU $28,500 2.8% Y FCL Y Foreclosure 09/30/2020 $19,241 67.5% 14 Cherry Creek Place I & II OF $27,137 2.7% Y FCL Y Foreclosure 01/03/2023 $16,893 62.3% 21 8 Times Square & 1460 Broadway MU $25,000 2.5% N C N Tenant Issues 09/07/2023 $9,121 36.5% 19 AHIP FLTN 3-Pack LO $22,769 2.3% N C Y DSCR 06/22/2023 - - 22 5400 Fulton IN $19,615 1.9% N C N Occupancy 03/07/2023 $1,515 7.7% 28 West Point Office OF $11,133 1.1% N C N DSCR 05/02/2023 - - 32 Comfort Inn & Suites Pittsburgh LO $8,014 0.8% N C N Occupancy 04/27/2020 - - 39 5042 Technology Parkway OF $5,821 0.6% N C N Occupancy 11/21/2022 $121 2.1% 47 Walgreens Albuquerque RT $4,500 0.4% N C N Tenant Issues 05/01/2024 - - 51 Walgreens Dorchester RT $3,063 0.3% N C N Occupancy 12/03/2021 - - Total K-LOCs $508,953 50.3% $112,661 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 84.9%, compared to 90.8% at last review and 100.3% at securitization. The KDSC is 1.64x, compared to 1.61x at last review and 1.81x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class A-S to AA- (sf) from AAA (sf)
  • Class B to BBB- (sf) from A- (sf)
  • Class C to CCC (sf) from B- (sf)
  • Class V1A to AA- (sf) from AAA (sf)
  • Class V1B to BBB- (sf) from A- (sf)
  • Class V1C to CCC (sf) from B- (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1012994

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