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KBRA Downgrades Four Ratings and Affirms All Other Ratings for MSBAM 2017-C34

3 Oct 2025   |   New York

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KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for MSBAM 2017-C34, a $963.3 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from seven K-LOCs (28.2% of the pool balance), three of which are among the top 10 loans. The rating actions also reflect the transaction’s deleveraging from loan payoffs, amortization and defeasance.

As of the September 2025 remittance period, there are four specially serviced assets (9.8%), including two that are in foreclosure (3.1%). KBRA identified ten K-LOCs (37.7%), including the specially serviced assets. Of the ten K-LOCs, seven (28.2%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 1 222 Second Street OF $100,000 10.4% N C N Lease Rollover 03/27/2025 $22,617 22.6% 3 237 Park Avenue OF $70,005 7.3% N C N Lease Rollover 08/19/2024 - - 7 Ocean Park Plaza OF $43,168 4.5% N C N Occupancy 10/06/2021 $15,019 34.8% 5 OKC Outlets RT $40,023 4.2% Y PM Y Specially Serviced 06/26/2020 $2,191 5.5% 11 Corporate Woods MU $34,116 3.5% N C N Lease Rollover 03/31/2023 $4,236 12.4% 14 444 West Ocean OF $25,135 2.6% Y 90+ N DSCR 11/22/2022 $7,438 29.6% 15 Starwood Capital Hotel Portfolio LO $25,000 2.6% Y C N Specially Serviced 03/25/2025 $2,683 10.7% 24 1102 Broadway OF $11,101 1.2% N C N Occupancy 11/08/2023 - - 25 Harbor Walk Office Building OF $10,252 1.1% N C N DSCR 04/15/2020 - - 39 Family Dollar Portfolio RT $4,316 0.4% Y 90+ N Foreclosure 10/03/2024 $991 23.0% Total K-LOCs $363,117 37.7% $55,174 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA.com

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 93.8%, compared to 96.2% at KBRA's last ratings change in October 2024 and 99.9% at issuance. The KDSC is 1.75x, down from 1.85x at KBRA's last ratings change and 1.87x at issuance.

Details concerning the classes with ratings changes are as follows:

  • Class E to CCC (sf) from B (sf)
  • Class F to CC (sf) from CCC (sf)
  • Class X-E to CCC (sf) from B (sf)
  • Class X-F to CC (sf) from CCC (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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