KBRA Affirms All Ratings for CGCMT 2017-C4
25 Oct 2024 | New York
KBRA affirms all of its outstanding ratings for CGCMT 2017-C4, a $789.3 million conduit transaction. The affirmations follow a surveillance review of the transaction which has exhibited worsening in pool performance since securitization including an increase in estimated losses for loans identified as K-LOCs and a total of six of the top ten loans assigned a KPO of Underperform. However, the transaction has benefited across the capital stack from increased certificate C/E levels due to amortization and loan payoffs and the magnitude of the changes does not warrant rating changes at this time.
As of the October 2024 remittance period, KBRA identified seven K-LOCs (19.8%), including two top ten loans (13.4%). Of the K-LOCs, two loans (13.4%) have an estimated loss:
- South Station (Largest, 9.5% of the pool balance, 22.3% loss severity)
- Corporate Woods Portfolio (7th largest, 3.9%, 14.5%)
The remaining five K-LOCs do not have estimated losses and represent 6.4% of the pool balance.
Excluding the K-LOCs with an estimated loss, the transaction’s WA KLTV is 106.0%, compared to 109.7% at last review and 102.9% at issuance. The KDSC is 1.58x, compared to 1.64x at last review and 1.72x at issuance.
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