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KBRA Downgrades Six Ratings and Affirms All Other Ratings for BANK 2017-BNK4

26 Mar 2026   |   New York

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KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings of BANK 2017-BNK4, an $836.7 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses since last review. The ratings actions also consider the transaction deleveraging from loan payoffs, amortization, and defeasance.

As of the March 2026 remittance period, there are two specially serviced assets (12.2% of the pool balance), which remain current in payments. KBRA identified 11 K-LOCs (43.0%), including the specially serviced assets. Of the K-LOCs, three (15.8%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 1 D.C. Office Portfolio OF $68,678 8.2% Y C N Specially Serviced 03/21/2023 $41,273 60.1% 3 One West 34th Street OF $60,000 7.2% N C N DSCR 01/25/2021 $31,351 52.3% 4 Pentagon Center OF $55,000 6.6% N C N Lease Rollover 03/28/2025 - - 6 The Davenport OF $50,000 6.0% N C N Occupancy 02/02/2023 - - 8 U.S. Grant Hotel LO $42,077 5.0% N C N DSCR 09/15/2020 - - 10 Key Center Cleveland MU $33,634 4.0% Y C Y Specially Serviced 12/08/2020 - - 18 2200 Renaissance Boulevard OF $21,831 2.6% N C N DSCR 07/08/2025 - - 19 B.F. Saul Hotel Portfolio LO $15,690 1.9% N C N DSCR 10/10/2024 - - 37 Best Western – Hannaford, OH LO $5,066 0.6% N C Y DSCR 03/26/2020 - - 39 Red Roof Inn BWI Airport LO $4,360 0.5% N C Y DSCR 03/26/2020 - - 44 Amcor Industrial IN $3,782 0.5% N C N Lease Rollover 03/06/2026 $172 4.6% Total K-LOCs $360,116 43.2% $72,796 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 weighted average WA KLTV is 101.2%, compared to 95.6% at last review and 100.5% at securitization. The KDSC is 1.52x, compared to 1.51x at last review and 1.68x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class D to BB (sf) from BBB- (sf)
  • Class E to CCC (sf) from B- (sf)
  • Class F to CC (sf) to CCC (sf)
  • Class X-D to BB (sf) from BBB- (sf)
  • Class X-E to CCC (sf) from B- (sf)
  • Class X-F to CC (sf) from CCC (sf)

To access ratings 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), 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.

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