DBRS Confirms All Classes of Citigroup Commercial Mortgage Trust 2017-P8

DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2017-P8 (the Certificates) issued by Citigroup Commercial Mortgage Trust 2017-P8 as listed below.

-- 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-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AAA (sf)
-- Class X-B at AAA (sf)
-- Class V-2A at AAA (sf)
-- Class V-2B at AAA (sf)
-- Class C at A (high) (sf)
-- Class V-2C at A (high) (sf)
-- Class V-3AC at A (high) (sf)
-- Class X-D at BBB (high) (sf)
-- Class D at BBB (sf)
-- Class V-2D at BBB (sf)
-- Class V-3D at BBB (sf)
-- Class X-E at BBB (low) (sf)
-- Class E at BB (high) (sf)
-- Class X-F at BB (sf)
-- Class F at BB (low) (sf)

All trends are Stable.

The rating confirmations reflect the stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The collateral consists of 53 loans secured by 167 commercial and multifamily properties. As of the August 2018 remittance, the pool had an aggregate principal balance of $1,083.7 million, representing a collateral reduction of 0.3% since issuance. Loans representing 18.9% of the current pool balance are reporting updated year-end 2017 figures, and 86.8% have provided Q1 2018 or Q2 2018 financials. Loans providing 2018 financials reported a weighted-average (WA) debt-service coverage ratio (DSCR) and WA debt yield of 1.88 times (x) and 9.7%, respectively. The DBRS WA DSCR and WA debt yield for the pool at issuance was 1.82x and 9.0%, respectively.

At issuance, four loans, representing 17.7% of the current pool balance, were shadow-rated investment grade. These loans include 225 & 233 Park Avenue South (Prospectus ID#1), General Motors Building (Prospectus ID#2), The Grove at Shrewsbury (Prospectus ID#7) and Lakeside Shopping Center (Prospectus ID#13). With this review, DBRS confirms that the performance of all four loans remains consistent with investment-grade loan characteristics. The 245 Park Avenue loan (Prospectus ID#27) was assigned a non-investment-grade rating at issuance, but that has since been removed due to a pending transfer of ownership interest and potential drop in equity behind the loan. For additional information on these loans, please see the DBRS Viewpoint platform, for which information has been provided below.

As of the August 2018 remittance, there were two loans on the servicer’s watchlist, representing 3.9% of the current pool balance. Both of these loans are being monitored for DSCR declines from issuance. In general, the DSCR declines are expected to be temporary, and DBRS expects the loans to return to issuance performance levels in the near term.

Classes X-A, X-B, X-D, X-E and X-F 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:

-- 225 & 233 Park Avenue South (Prospectus ID #1, 5.5% of pool)
-- General Motors Building (Prospectus ID #2, 5.1% of pool)
-- The Grove at Shrewsbury (Prospectus ID #7, 4.0% of pool)
-- Lakeside Shopping Center (Prospectus ID #13, 3.0% of pool)
-- 245 Park Avenue (Prospectus ID #27, 1.4% of pool)

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.

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.