KBRA Downgrades Four Ratings and Affirms All Other Ratings for BANK 2019-BNK17
7 Mar 2025 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for BANK 2019-BNK17, a $798.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on two of the K-LOCs (13.8% of the pool balance).
As of the February 2025 remittance period, there are no delinquent or specially serviced loans; however, KBRA identified three K-LOCs (15.1%), two of which have estimated losses (13.8%). These include two of the top 10 loans:
- 350 Rhode Island South (largest, 7.8%, 38.5% estimated loss severity)
- Grand Oaks Business Park (5th largest, 6.0%, 12.2%)
The remaining K-LOC does not have an estimated loss and represents 1.4% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 87.4%, compared to 96.3% at last review and 90.8% at securitization. The KDSC is 2.14x, compared to 2.12x at last review and 2.17x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class F to B- (sf) from BB- (sf)
- Class G to CCC (sf) from B- (sf)
- Class X-F to B- (sf) from BB- (sf)
- Class X-G to CCC (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.