Morningstar DBRS Confirms Credit Ratings on All Classes of CSAIL 2017-CX10 Commercial Mortgage Trust

DBRS, Inc. (Morningstar DBRS) confirmed its credit ratings on the Commercial Mortgage Pass-Through Certificates, Series 2017-CX10 issued by CSAIL 2017-CX10 Commercial Mortgage Trust as follows:

-- Class STN-A at AA (low) (sf)
-- Class STN-X at A (sf)
-- Class STN-B at A (low) (sf)
-- Class V1-STNA at A (low) (sf)
-- Class STN-C at BBB (low) (sf)
-- Class V1-STNC at BBB (low) (sf)
-- Class V2-STN at BBB (low) (sf)

All trends are Stable.

The credit rating confirmations reflect the healthy performance of the underlying collateral as exhibited by the YE2024 occupancy rate and debt service coverage ratio of 88% and 2.40 times (x), respectively, with revenue per available room (RevPAR) back in line with issuance expectations. Despite the generally healthy performance metrics, the collateral's net cash flow (NCF) has been historically volatile, with a dip in the YE2023 reporting when compared with the prior year followed by an improvement in performance in 2024. As such, Morningstar DBRS maintained the stressed NCF scenario to the analysis derived in the prior review, as further detailed below.

Morningstar DBRS rates the rake bond that is tied to the Standard High Line NYC Loan-Specific Certificates, backed by the Standard High Line NYC loan. The interest-only (IO), fixed-rate loan is secured by the borrower's fee-simple interest in The Standard, High Line hotel, a high-end, 338-key boutique hotel in the Meatpacking District of Manhattan, New York. The whole loan of $170.0 million consists of $45.0 million of senior debt that backs the pooled certificates, and $125.0 million of junior debt, of which $58.4 million backs the Standard High Line NYC Loan-Specific Certificates. The loan has an upcoming maturity in November 2027.

According to the STR report for the trailing 12-month (T-12) period ended March 31, 2025, the property reported an occupancy rate, average daily rate, and RevPAR of 87.0%, $458, and $399, respectively, with all metrics improving on the prior year figures. In addition to improvements in the STR metrics, the subject's NCF also saw considerable improvements, with the YE2024 NCF reported at $19.6 million compared with $15.8 million at YE2023 and $22.5 million at YE2022. The subject's NCF has been historically volatile, mainly driven by fluctuations in food and beverage revenues and increasing expenses.

Three updated appraisals have been provided since the loan's issuance in 2017.The loan was formerly in special servicing, transferring in June 2020 because of concerns during the coronavirus pandemic. During that time the appraised values ranged from $241.0 million in September 2022, to $245.7 million in August 2021, to $244.0 million in June 2022. Despite the decline from the issuance appraised value of $340.0 million, the value remains well above the Morningstar DBRS value of $168.1 million.

Because of volatility in NCF, with this review, Morningstar DBRS maintained the sizing approach from the prior review, using a stressed NCF of $12.6 million based on a 20% haircut to the YE2023 NCF, while maintaining a capitalization rate of 7.5%, which results in a Morningstar DBRS value of $168.1 million. The implied Morningstar DBRS LTV for the stressed scenario is 61.5% for the trust and 101.1% for the whole-loan balance. Morningstar DBRS maintained positive qualitative adjustments totaling 3.0% to account for the property's revered and award-winning quality as well as the premier location on Manhattan's far west side, with unobstructed views of the Hudson River and the Manhattan skyline.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS  
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.
 
A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025), https://dbrs.morningstar.com/research/454196

Class STN-X is IO certificate that references 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 credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

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

The principal methodology is North American CMBS Surveillance Methodology (February 28, 2025), https://dbrs.morningstar.com/research/448963.

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit ratings were initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for these credit rating actions.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with these credit rating actions.

These are solicited credit ratings.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 332-3429

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- North American Single-Asset/Single-Borrower Ratings Methodology (February 28, 2025), https://dbrs.morningstar.com/research/448962
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024), https://dbrs.morningstar.com/research/439702
-- Legal Criteria for U.S. Structured Finance (December 3, 2024), https://dbrs.morningstar.com/research/444064
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024), https://dbrs.morningstar.com/research/438283

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.