KBRA Downgrades Three Ratings and Affirms All Other Ratings for CSAIL 2017-CX10

KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings of CSAIL 2017-CX10, a $662.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses from two K-LOCs (9.5% of the pool balance), both of which are secured by office properties. In addition, there are three other K-LOC or underperforming loans (20.5%) among the top 10 that pose additional risk. The ratings also consider increased certificate C/E levels due to amortization and loan payoffs, as well as deleveraging due to defeasances.

As of the September 2024 remittance period, there are two specially serviced loans (12.6% of the pool balance), one of which (5.0%) is in foreclosure.

KBRA has identified six K-LOCs (28.0%), two of which (9.5%) have estimated losses. These include:

Four of the top 10 loans (23.5%)

The remaining two K-LOCs do not have estimated losses and represent 4.5% of the pool balance.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 82.8%, compared to 84.8% at last review and 81.8% at securitization. The KDSC is 2.85x, compared to 2.88x at last review and 3.07x at securitization.

Details concerning the ratings adjustments are as follows:

To access rating and relevant documents, click here.

Click here to view the report.

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