KBRA Upgrades One Rating and Affirms All Other Ratings for FREMF 2017-K70
20 Feb 2025 | New York
KBRA upgrades the rating of one class and affirms all other outstanding ratings for FREMF 2017-K70, a $1.3 billion CMBS multi- borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The ratings actions follow a surveillance review of the transaction, which has exhibited an improvement in pool performance since KBRA’s last ratings change in August 2022. In addition, the rating actions reflect transaction deleveraging from loan defeasances and amortization.
As of the January 2025 remittance period, none of the loans are specially serviced or delinquent; however, KBRA identified five K-LOCs (7.7% of the pool balance). These include one top 10 loan:
- Lawrence House Apartments (5th largest, 3.1% of the pool balance, 11.7% estimated loss severity)
One additional K-LOC has a loss:
- Hawks Pointe I, II & III (1.2%, 16.3%)
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 100.5% compared to 113.8% at KBRA's last ratings change and 114.0% at securitization. The WA KDSC is 1.77x, compared to 1.60x at KBRA's last ratings change and 1.61x at securitization.
Details concerning the class with a ratings change are as follows:
- Class A-M to AA+ (sf) from AA (sf)
To access ratings and relevant documents, click here.
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