KBRA Affirms All Outstanding Ratings for WFCM 2017-C38
27 Jun 2025 | New York
KBRA affirms all outstanding ratings for WFCM 2017-C38, a $986.2 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight worsening in pool performance compared to last review including an increase in estimated losses; however, the magnitude of the changes does not warrant ratings adjustments at this time.
As of the June 2025 remittance period, there are two specially serviced loans (9.6%). KBRA identified eleven K-LOCs (23.6%), including the specially serviced assets. This includes three top 10 loans (14.6%):
- Starwood Capital Group Hotel Portfolio (4th largest; 5.1% of the pool balance, 10.7% estimated loss severity)
- Long Island Prime Portfolio - Melville (5th largest, 4.9%)
- 225 & 223 Park Avenue South (6th largest, 4.6%, 17.3%)
Two other K-LOCs have estimated losses:
- North Towne Commons (0.6%, 10.1%)
- Shoppes at Hunters Run (0.3%, 20.9%)
The remaining six K-LOCs do not have estimated losses and represent 8.2% of the pool balance.
Excluding K-LOCs with estimated losses, the transaction has a WA KLTV of 89.8%, as compared to 96.3% at KBRA’s last ratings change and 90.0% at securitization. The KDSC is 2.12x, as compared to 2.07x at KBRA’s last ratings change and 2.23x at securitization.
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