KBRA Downgrades Four Ratings and Affirms All Other Ratings for BANK 2017-BNK4
26 Mar 2025 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings of BANK 2017-BNK4, an $847.7 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses since last review. The ratings actions also consider the transaction deleveraging from loan payoffs, amortization, and defeasance.
As of the March 2025 remittance period, there is one specially serviced asset (4.1% of the pool balance), which is current. KBRA identified ten K-LOCs (40.4%), including the specially serviced asset.
The K-LOCs include six top 10 loans (36.8%):
- D.C. Office Portfolio (largest, 8.1% of the pool balance, 48.7% estimated loss severity)
- One West 34th Street (3rd largest, 7.1%, 47.4%)
- Pentagon Center (4th largest, 6.5%)
- The Davenport (5th largest, 5.9%)
- U.S. Grant Hotel (6th largest, 5.1%)
- Key Center Cleveland (8th largest, 4.1%)
One additional K-LOC has an estimated loss:
- Lawndale Plaza (0.6%, 1.0%)
The remaining three K-LOCs do not have estimated losses and represent 3.0% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s weighted average WA KLTV is 94.7%, compared to 101.6% at last review and 100.5% at securitization. The KDSC is 1.47x, compared to 1.50x at last review and 1.68x at securitization.
Details concerning the classes with rating changes are as follows:
- Class E to B- (sf) from BB- (sf)
- Class F to CCC (sf) from B- (sf)
- Class X-E to B- (sf) from BB- (sf)
- Class X-F to CCC (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.