KBRA Affirms All Ratings for LCCM 2017-LC26
8 Apr 2025 | New York
KBRA affirms all of its outstanding ratings for LCCM 2017-LC26, a $461.9 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since last review. However, C/E levels have improved since KBRA’s last ratings change in June 2021 due to amortization and deleveraging, and defeasance totals 26.8% of the pool balance after three loans (9.2% of the pool balance) were defeased since last review. Therefore, the magnitude of the changes does not warrant ratings adjustments at this time.
As of the March 2025 remittance period, there are three specially serviced loans (11.5%), including two loans (10.6%) in foreclosure. KBRA identified five K-LOCs (15.9%), including the specially serviced assets. The K-LOCs include three (13.4%) top 10 loans:
- Regions Center and Bank Tower (4th largest, 7.3% of the pool balance, 61.7% estimated loss severity)
- Hilton Garden Inn Corvallis (5th largest, 3.4%)
- Wilmington Hotel Portfolio (7th largest, 2.7%, 27.1%)
One other K-LOC has an estimated loss:
- 1867-1871 Amsterdam Avenue (0.9%, 5.3%)
The remaining K-LOC, representing 1.7% of the pool, does not have an estimated loss.
Excluding K-LOCs with estimated losses, the transaction's WA KLTV is 104.7%, compared to 104.1% at KBRA's last ratings change in June 2021 and 100.5% at securitization. The KDSC is 1.31x, compared to 1.61x at KBRA's last ratings change and 1.72x at securitization
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