Fitch Affirms BANK 2017-BNK4; Revises Outlooks on Two Classes to Negative.
ENPNewswire-January 28, 2022--Fitch Affirms BANK 2017-BNK4; Revises Outlooks on Two Classes to Negative
(C)2022 ENPublishing - http://www.enpublishing.co.uk
Release date- 27012022 - Fitch Ratings has affirmed 15 classes of BANK 2017-BNK4 commercial mortgage pass-through certificates.
In addition, Fitch has revised the Rating Outlooks on two classes to Negative from Stable.
RATING ACTIONS
Entity / Debt
Rating
Prior
BANK 2017-BNK4
A-2 06541FAX7
LT
AAAsf
Affirmed
AAAsf
A-3 06541FAZ2
LT
AAAsf
Affirmed
AAAsf
A-4 06541FBA6
LT
AAAsf
Affirmed
AAAsf
A-S 06541FBD0
LT
AAAsf
Affirmed
AAAsf
A-SB 06541FAY5
LT
AAAsf
Affirmed
AAAsf
B 06541FBE8
LT
AA-sf
Affirmed
AA-sf
C 06541FBF5
LT
A-sf
Affirmed
A-sf
D 06541FAJ8
LT
BBB-sf
Affirmed
BBB-sf
E 06541FAL3
LT
BB-sf
Affirmed
BB-sf
Page
of 2
VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Increased Loss Expectations: The Negative Outlook revisions reflect increased pool loss expectations since Fitch's prior rating action, primarily driven by the third largest loan, One West 34th Street. Fitch's current ratings incorporate a base case loss of 6.20%. Losses are marginally higher when factoring additional stresses on two hotel loans to account for the ongoing business disruption as a result of the pandemic. The Negative Outlooks reflect continued performance stabilization of a higher percentage of Fitch Loans of Concern (FLOCs) since the prior rating action. There are 15 FLOCs (43.9% of the pool), up previously from 13 FLOCs (32.1%).
The largest contributor to overall loss expectations and the largest increase in loss since the prior rating action is the One West 34th Street loan (6.2% of pool), which is secured by a 210,358-sf office property located at the corner of West 34th Street and Fifth Avenue in Manhattan, across the street from the Empire State Building. The current largest tenants are CVS (7.2% of NRA; through January 2034), Olivia Miller Inc (6.3%; July 2024) and International Inspiration (4.2%; November 2026). Upcoming rollover includes 3.4% of NRA (five leases) in 2022, 5.3% (eight leases) in 2023 and 18.0% (11 leases) in 2024.
Pre-pandemic occupancy and cash flow at the property had already been trending downward. The property was 73% occupied as of September 2021, down from 83% at YE 2020, 90% at YE 2019 and 95% at issuance. Tenants that have vacated between YE 2020 and September 2021 include TMX Group US (2.5% NRA), Lane Bryant (2.4%), Tri-State Envelope (1.3%), Charak (0.4%), Resource Innovative...
To continue reading
Request your trial