DBRS Confirms All Classes of BANK 2017-BNK5

DBRS Limited (DBRS) confirmed the ratings of all classes of the Commercial Mortgage Pass Through Certificates, Series 2017-BNK6 (the Certificates) issued by BANK 2017-BNK5 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (high) (sf)
-- Class X-B at AA (sf)
-- Class C at AA (low) (sf)
-- Class X-D at A (low) (sf)
-- Class D at BBB (high) (sf)
-- Class E at BB (high) (sf)
-- Class F at BB (low) (sf)
-- Class G at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The collateral consists of 87 loans secured by 211 commercial properties. As of the June 2018 remittance, the pool had an aggregate principal balance of $1,225.3 million, representing a collational reduction of 0.5% since issuance. Loans representing 86.7% of the current pool balance are reporting updated year-end figures. Based on these financials, those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.91 times (x) and 9.8%, respectively. The DBRS WA DSCR and WA debt yield at issuance for those loans were 1.90x and 9.6%, respectively.

At issuance, four loans, representing 18.3% of the current pool balance, were shadow-rated investment grade. These loans include Prospectus ID #1, Del Amo Fashion Center; Prospectus ID#5, Olympic Tower; Prospectus ID #9, Gateway Net Lease Portfolio; and Prospectus ID #11, Stor-It Southern California Portfolio. With this review, DBRS confirms that the performance of these loans remains consistent with investment-grade loan characteristics.

As of the June 2018 remittance, there were 20 loans on the servicer’s watchlist, representing 6.4% of the current pool balance; however, the bulk of these loans were flagged for deferred maintenance or not reporting updated financials since issuance.

Class X-A, X-B and X-D are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Del Amo Fashion Center
-- Olympic Tower
-- Sprouts Farmers Market
-- Gateway Net Lease Portfolio
-- 200 Center Anaheim
-- Stor-It Southern California Portfolio

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.