Fitch Ratings has affirmed 15 classes of
RATING ACTIONS
Entity / Debt
Rating
Prior
CFCRE 2017-C8
A-3 12532CAZ8
LT
AAAsf
Affirmed
AAAsf
A-4 12532CBA2
LT
AAAsf
Affirmed
AAAsf
A-M 12532CBB0
LT
AAAsf
Affirmed
AAAsf
A-SB 12532CAY1
LT
AAAsf
Affirmed
AAAsf
B 12532CBC8
LT
AA-sf
Affirmed
AA-sf
C 12532CBD6
LT
A-sf
Affirmed
A-sf
D 12532CAA3
LT
BBB-sf
Affirmed
BBB-sf
E 12532CAC9
LT
Bsf
Affirmed
Bsf
F 12532CAE5
LT
CCCsf
Affirmed
CCCsf
Page
of 2
VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Slight Increase In Loss Expectations: The elevated loss expectations are driven by an increase in expected losses to the
Largest Contributor to Loss: The largest contributor to loss is the 340 Bryant loan (3%), which is secured by a 62,270 sf, class B office building located in the heart of the SOMA district of
The second largest contributor to loss is the
Fitch modeled a loss of approximately 13%, which utilized a 9.5% cap rate and a 15% haircut to the YE 2021 NOI to reflect upcoming rollover concerns.
The next largest contributor to loss is the Flats East Bank Phase I loan (4.1%), which is secured by a 128,070-sf mixed-use property located in downtown
Performance has begun to stabilize post pandemic. Per the
Change to Credit Enhancement (CE): As of the
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades to classes A-3 through A-M are not likely due to their position in the capital structure and the high CE; however, downgrades to these classes may occur should interest shortfalls occur. Downgrades to classes B, C, and D would occur if loss expectations increase significantly and/or should CE be eroded. Downgrades to classes E and F would occur if the performance of the FLOCs continues to decline and/or fail to stabilize, or should losses from specially serviced loans/assets be larger than expected or more certain.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Upgrades to classes B and C would likely occur with significant improvement in CE and/or defeasance; however, adverse selection and increased concentrations, or the underperformance of the FLOCs, could reverse this trend. An upgrade to class D is unlikely and would be limited based on sensitivity to concentrations or further adverse selection. Classes would not be upgraded above 'Asf' if there were a likelihood for interest shortfalls. An upgrade to classes E and F is not likely until the later years in the transaction and only if the performance of the remaining pool is stable.
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
Additional information is available on www.fitchratings.com
(C) 2023 Electronic News Publishing, source