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KBRA Downgrades Three Ratings and Affirms All Other Outstanding Ratings for WFCM 2017-C39

31 Jul 2026   |   New York

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KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings of WFCM 2017-C39, a $962.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses from nine K-LOCs (34.0% of the pool balance) since KBRA's last ratings change in August 2025.

As of the July 2026 remittance period, there are four specially serviced assets (9.6%), one of which is REO (2.5%). KBRA identified 11 K-LOCs (37.5%), including the specially serviced assets. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 1 225 & 233 Park Avenue South OF $70,000 7.3% N C Y Modification 09/21/2023 $24,100 34.4% 3 Lakeside Shopping Center RT $58,000 6.0% N C N DSCR 03/14/2025 $10,746 18.5% 5 Columbia Park Shopping Center RT $42,931 4.5% N C Y DSCR 03/08/2023 $27,963 65.1% 9 Lincolnshire Commons MU $40,657 4.2% N C N DSCR 02/07/2023 $11,466 28.2% 14 Cleveland East Office Portfolio OF $27,996 2.9% Y NPM Y Specially Serviced 07/07/2022 $13,142 46.9% 10 Starwood Capital Group Hotel Portfolio LO $27,695 2.9% Y C Y Specially Serviced 03/25/2025 $8,358 30.2% 16 First Stamford Place OF $24,200 2.5% Y C N REO 07/10/2023 $10,323 42.7% 15 Crowne Plaza Dallas LO $23,008 2.4% N C Y Prior SS 10/10/2024 $3,462 15.0% 17 181 Second Avenue OF $22,600 2.3% N C N Occupancy 04/04/2024 - - 22 River City Plaza RT $12,591 1.3% Y C Y Specially Serviced 10/13/2021 $1,385 11.0% 27 Hampton Inn & Suites Nashville Airport LO $10,842 1.1% N C Y DSCR 07/01/2026 - - Total K-LOCs $360,521 37.5% $110,946 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

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 86.6%, compared to 91.2% at last ratings change and 94.6% at securitization. The KDSC is 1.70x, compared to 1.75x at last ratings change and 2.04x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class C to BBB+ (sf) from A- (sf)
  • Class D to BB (sf) from BBB (sf)
  • Class E-RR to CCC (sf) from B- (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.

Doc ID: 1016291