KBRA Downgrades Five Ratings and Affirms All Other Ratings for WFCM 2017-C39
2 Aug 2024 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of WFCM 2017-C39, a $1.0 billion CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses from five K-LOCs (21.2%).
As of the July 2024 remittance, there are five specially serviced assets (14.2% of the pool balance). KBRA identified nine K-LOCs (27.2%), including the specially serviced assets. Five of the K-LOCs (5.2%) have estimated losses:
- 225 & 233 Park Avenue South (largest, 6.9% of the pool balance, 13.8% estimated loss severity)
- Columbia Park Shopping Center (5th largest, 5.0%, 22.5%)
- Lincolnshire Commons (8th largest, 4.2%, 17.4%)
- Cleveland East Office Portfolio (2.8%, 32.3%)
- First Stamford Place (2.4%, 39.9%)
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 97.1%, compared to 99.0% at last review and 94.6% at issuance. The KDSC is 1.80x, compared to 1.84x at last review and 2.04x at issuance.
Details concerning the classes with rating changes are as follows:
- Class C to A- (sf) from A (sf)
- Class D to BBB (sf) from A- (sf)
- Class E-RR to BB (sf) from BBB- (sf)
- Class F-RR to CCC (sf) from BB- (sf)
- Class G-RR to CC (sf) from B (sf)
To access rating and relevant documents, click here.
Click here to view the report.