KBRA Affirms All Ratings for WFCM 2017-C40
4 Oct 2024 | New York
KBRA affirms all of its outstanding ratings for WFCM 2017-C40, a $647.1 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited an increase in loans that were identified as K-LOCs with estimated losses. However, the magnitude of the losses do not warrant ratings adjustments at this time.
As of the September 2024 remittance period, there are two specially serviced assets (11.2% of the total pool balance), of which one (1.9%) is matured non-performing. KBRA identified five K-LOCs (13.0%), including the two specially serviced assets, both of which have estimated losses. The K-LOCs include:
One top 10 loan (9.3%):
- 225 & 233 Park Avenue South (largest, 9.3% of the pool balance, 13.8% estimated loss severity)
One other K-LOC has an estimated loss:
- Magnolia Hotel Denver (1.9%, 13.1%)
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 97.6%, compared to 103.4% at last review and 95.6% at securitization. The KDSC is 1.90x, compared to 1.89x at last review and 2.03x at securitization.
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