KBRA Affirms All Outstanding Ratings for UBS 2017-C2
8 May 2025 | New York
KBRA affirms all of its outstanding ratings for UBS 2017-C2, a $664.6 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has benefitted from deleveraging from loan pay offs and amortization (26.0% of the initial pool balance) as well as defeasance (17.6%). Offsetting the deleveraging, pool performance has shown signs of worsening based on an increase in the number of specially serviced loans and loans identified as K-LOCs since closing.
As of the April 2025 remittance period, there are three specially serviced assets (11.1%), one of which (0.8%) is in foreclosure. KBRA identified nine K-LOCs (20.5%). This includes three top 10 loans (15.4%):
- Starwood Capital Group Hotel Portfolio (3rd largest, 5.6% of the pool balance, 10.8% estimated loss severity)
- 85 Broad Street (4th largest, 5.1%)
- AHIP Northeast Portfolio III (6th largest, 4.7%, 12.2%)
One other K-LOC has an estimated loss:
- Comfort Inn Westport (1.1% of the pool balance, 28.5% estimated loss severity)
The remaining five K-LOCs do not have estimated losses and represent 4.0% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 85.2%, compared to 91.2% at last review and 91.0% at securitization. The KDSC is 1.89x, compared to 1.93x at last review and 2.18x at securitization.
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