KBRA Downgrades One Rating of UBS 2017-C1 to D (sf) Following Realization of Principal Losses
23 May 2025 | New York
KBRA downgrades the rating of the E-RR certificate to D (sf) from CC (sf) for UBS 2017-C1, a $660.4 million CMBS conduit transaction, following realized losses incurred from the resolution of the $6.0 million La Quinta Inn & Suites Harrisburg Hershey REO asset as reflected in the May 2025 remittance report. The asset incurred a loss of $5.5 million (90.3% loss severity of original balance). The loss was generally in line with KBRA's expectations in the May 2025 Surveillance Report linked below.
There are $44.6 million in cumulative principal losses on the transaction according to the May 2025 remittance report. Classes NR-RR and F-RR have been reduced to zero and the realized losses have resulted in the principal balance of Class E-RR being reduced by $1.5 million (7.6% of the original certificate balance). Along with the liquidation of the La Quinta Inn & Suites Harrisburg Hershey REO asset, the transaction has incurred losses from the liquidation sale of five previously specially serviced assets: Art Van Portfolio ($3.9 million loss, September 2021), UniSquarePortfolio ($14.9 million, December 2021), Greenhill Apartments ($4.5 million, January 2024), Hilton Woodcliff Lake ($11.9 million, March 2024), and Comfort Inn Cleveland ($4.7 million, June 2024).
KBRA's other outstanding ratings are unchanged at this time.
Details concerning the class with a rating change are as follows:
- Class E-RR to D (sf) from CC (sf)
Rating Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as, the magnitude and extent of interest shortfalls, if any, on the certificates.
To access ratings and relevant documents, click here.