KBRA Downgrades Four Ratings and Affirms All Other Ratings for CSAIL 2017-CX9
6 Sep 2024 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings of CSAIL 2017-CX9, a $497.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from three K-LOCs (21.1%), all of which are among the top 10 loans. The rating actions also reflect the transaction’s deleveraging from loan payoffs, amortization and defeasance.
As of the August 2024 remittance period, there are two specially serviced assets (15.3% of the pool balance), of which one (8.1%) is REO. KBRA identified six K-LOCs (41.3%), including the specially serviced assets. Three of the K-LOCs (21.1%) have estimated losses:
- 300 Montgomery (6th largest, 7.2%, 22.9% estimated loss severity)
- Center 78 (7th largest, 7.2%, 43.5%)
- The Manhattan (8th largest, 6.6%, 20.1%)
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 70.1%, compared to 76.2% at last review and 80.2% at securitization. The KDSC is 3.48x, compared to 3.19x at last review and 2.93x at securitization.
Details concerning the classes with rating changes are as follows:
- Class E to B (sf) from BB- (sf)
- Class F to CCC (sf) from B (sf)
- Class X-E to B (sf) from BB- (sf)
- Class V1-E to B (sf) from BB- (sf)
To access rating and relevant documents, click here.
Click here to view the report.
Related Publication
Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology