KBRA Downgrades Three Ratings and Affirms All Other Ratings for UBS 2017-C6
11 Oct 2024 | New York
KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings for UBS 2017-C6, a $523.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses. In addition, four (24.0% of the pool balance) of the top 10 loans have a KPO of Underperform, of which, three (19.2%) are secured by office properties.
As of the September 2024 remittance period, there are four specially serviced assets (12.4%), including two that are 60+ days delinquent (7.7%). KBRA identified nine K-LOCs (20.6%), including the specially serviced assets. These include one of the top 10 loans:
- 111 West Jackson (4th largest, 5.7%, 31.4% estimated loss severity)
Four other K-LOCs have estimated losses:
- 2U Headquarters (3.6%, 45.2%)
- Murrieta Plaza (2.8%, 0.8%)
- 20 South Charles Street (1.2%, 39.6%)
- DoubleTree Wilmington (0.6%, 5.5%)
The remaining four K-LOCs do not have estimated losses and represent 6.7% of the pool.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 103.1%, compared to 105.8% at last review and 95.8% at issuance. The KDSC is 1.62x, compared to 1.66x at last review and 2.01x at issuance.
Details concerning the classes with ratings changes are as follows:
- Class C to BBB (sf) from A- (sf)
- Class D to BB- (sf) from BBB- (sf)
- Class X-D to BB- (sf) from BBB- (sf)
To access rating and relevant documents, click here.
Click here to view the report.
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Methodologies
- Structured Finance: Global Structured Finance Counterparty Methodology
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- ESG Global Rating Methodology