Press Release|CMBS

KBRA Affirms All Ratings for LCCM 2017-LC26

11 Apr 2024   |   New York

Contacts

KBRA affirms all of its outstanding ratings for LCCM 2017-LC26, a $469.1 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction. Since KBRA's last ratings change in June 2021, C/E levels have improved due to amortization and deleveraging and there has been a decrease in specially serviced assets in the pool. However, the pool continues to have an elevated exposure to K-LOCs and has exhibited a declining trend in pool credit metrics such as WA KLTV and KDSC.

As of the March 2024 remittance period, there are two specially serviced loans (4.2% of the pool balance) which are in foreclosure. KBRA identified four K-LOCs (14.4%), including the specially serviced assets. These include three top 10 loans (13.5%):

  • Regions Center and Bank Tower (4th largest, 7.3% of the pool balance)
  • Hilton Garden Inn Corvallis (6th largest, 3.4%)
  • Wilmington Hotel Portfolio (9th largest, 2.8%)

One K-LOC has an estimated loss:

  • 1867-1871 Amsterdam Avenue (0.9% of the pool balance, 19.4% estimated loss severity)

Excluding the K-LOC with an estimated loss, the transaction's WA KLTV is 108.3%, compared to 104.1% at KBRA's last ratings change and 100.5% at securitization. The KDSC is 1.35x, compared to 1.61x at KBRA's last ratings change and 1.72x at securitization.

To access rating and relevant documents, click here.

Click here to view the report.

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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) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003884

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