Fitch Ratings has affirmed 15 classes of Citigroup Commercial Mortgage Trust, commercial mortgage pass-through certificates, series 2017-B1 (CGCMT 2017-B1).

The Rating Outlooks remain Negative on classes E, F and X-E.

RATING ACTIONS

ENTITY/DEBT	RATING		PRIOR

Citigroup Commercial Mortgage Trust 2017-B1

Class A-1 17326CAW4

LT	AAAsf 	Affirmed		AAAsf

Class A-2 17326CAX2

LT	AAAsf 	Affirmed		AAAsf

Class A-3 17326CAY0

LT	AAAsf 	Affirmed		AAAsf

Class A-4 17326CAZ7

LT	AAAsf 	Affirmed		AAAsf

Class A-AB 17326CBA1

LT	AAAsf 	Affirmed		AAAsf

Class A-S 17326CBB9

LT	AAAsf 	Affirmed		AAAsf

Class B 17326CBC7

LT	AA-sf 	Affirmed		AA-sf

Class C 17326CBD5

LT	A-sf 	Affirmed		A-sf

Class D 17326CAA2

LT	BBB-sf 	Affirmed		BBB-sf

Class E 17326CAC8

LT	BB-sf 	Affirmed		BB-sf

Class F 17326CAE4

LT	B-sf 	Affirmed		B-sf

Class X-A 17326CBE3

LT	AAAsf 	Affirmed		AAAsf

Class X-B 17326CBF0

LT	AA-sf 	Affirmed		AA-sf

Class X-D 17326CAJ3

LT	BBB-sf 	Affirmed		BBB-sf

Class X-E 17326CAL8

LT	BB-sf 	Affirmed		BB-sf

VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Stable Overall Performance; Increased Loss Expectations Due to Coronavirus Pandemic Concerns: While overall pool performance remains stable, loss expectations have increased since Fitch's prior rating action primarily due to additional stresses applied to loans expected to be impacted in the near term from the coronavirus pandemic. Ten loans (28.0% of pool), including one loan (1.0%) in special servicing, were designated Fitch Loans of Concern (FLOCs). Seven (17.9%) were designated FLOCs primarily due to near term effects of the coronavirus pandemic.

Regional Mall Fitch Loan of Concern: Lakeside Shopping Center (6.4%) is secured by a 1.2 million sf super regional mall located in Metairie, LA, approximately 7.8 miles northwest of New Orleans. It was designated a FLOC because its collateral anchor, JCPenney, recently announced the closure of its store at this location. While JCPenney leases 16.8% NRA through November 2022, it only accounts for 4.6% of rent and recoveries. The other collateral anchors at the mall are Dillard's, which leases 25.7% NRA through December 2029, and Macy's, which has a ground lease for 19% NRA through February 2029. Occupancy will decline to 82% from 99% as a result of JCPenney vacating. At YE 2019, servicer-reported NOI DSCR was 2.72x.

Specially Serviced Loan: 4901 West Irving Park (1.0%), secured by a 60,448 sf retail property in Chicago, IL transferred to special servicing in January 2020 for payment default. Larger tenants include Binny's Beverage Depot, which leases 40.5% NRA through January 2033 and Retro Fitness, which leases 33% NRA through May 2027. Per servicer updates, the lender is simultaneously dual tracking foreclosure/receivership proceedings while continuing negotiations with the borrower on a potential resolution. As of September 2019, occupancy was 82%, and as the YTD September 2019, servicer-reported NOI DSCR was 1.95x.

Minimal Change to Credit Enhancement: There has been minimal change to credit enhancement since issuance. As of the July 2020 distribution date, the pool's aggregate balance has been paid down by 1.6% to $926.9 million from $941.6 million at issuance. All original 48 loans remain in the pool. Based on the loans' scheduled maturity balances, the pool is expected to amortize 6.7% during the term. Twenty loans (59.7% of pool) are full-term, interest-only. Sixteen loans (19.7%) had a partial-term, interest-only component at issuance of which seven have begun amortizing. One loan (1.1%) is fully defeased.

Pool Concentration: The top 10 loans comprise 53.9% of the pool. Loan maturities are concentrated in 2027 (91.0%). Based on property type, the largest concentrations are mixed-use at 24.8%, retail at 21.6% and hotel at 18.6%.

Exposure to Coronavirus Pandemic: Six loans (18.6%) are secured by hotel properties. The weighted average NOI DSCR for all the hotel loans is 2.25x. These hotel loans could sustain a weighted average decline in NOI of 56% before DSCR falls below 1.00x. Twelve loans (21.6%) are secured by retail properties. The weighted average NOI DSCR for all non-defeased retail loans is 2.44%. These retail loans could sustain a weighted average decline in NOI of 60% before DSCR fall below 1.00x. Additional coronavirus specific base case stresses were applied to four hotel loans (12.9%) including Old Town San Diego Hotel Portfolio (5.7%), McNeill Hotel Portfolio (3.6%) and Double Tree Lafayette (2.5%) and two retail loans (3.9%) including Wellington Commercial Condo (3.2%). These additional stresses contributed to the Negative Outlooks on classes E, F and X-E.

RATING SENSITIVITIES

The Stable Outlooks on classes A-1 through D reflect the overall stable performance of the pool and expected continued amortization. The Negative Outlooks on classes E, F and X-E reflect concerns with the FLOCs, primarily loans expected to be impacted by exposure to the coronavirus pandemic in the near term.

Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade:

Factors that could lead to upgrades would include stable to improved asset performance coupled with paydown and/or defeasance. Upgrades of classes B and C would likely occur with significant improvement in CE and/or defeasance; however increased concentrations, further underperformance of FLOCs and decline in performance of loans expected to be impacted by the coronavirus pandemic could cause this trend to reverse. An upgrade of class D is considered unlikely and would be limited based on sensitivity to concentrations or the potential for future concentration. Classes would not be upgraded above 'Asf' if there is a likelihood for interest shortfalls. Upgrades of classes E and F are not likely due to performance concerns with loans expected to be impacted by the coronavirus pandemic in the near-term but could occur if performance of the FLOCs improves and/or if there is sufficient CE, which would likely occur if the non-rated classes are not eroded and the senior classes pay-off.

Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade:

Factors that could lead to downgrades include an increase in pool level losses from underperforming or specially serviced loans. Downgrades of classes A-1 through C are not likely due to the position in the capital structure. Downgrades of classes D through F could occur if additional loans become FLOCs, with further underperformance of the FLOCs and decline in performance and lack of recovery of loans expected to be impacted by the coronavirus pandemic in the near term.

In addition to its baseline scenario, Fitch also envisions a downside scenario where the health crisis is prolonged beyond 2021; should this scenario play out, Fitch expects that a greater percentage of classes may be assigned Negative Outlooks or those with Negative Outlooks would be downgraded one or more categories.

For more information on Fitch's original rating sensitivity on the transaction, please refer to the new issuance report.

Deutsche Bank is the trustee for the transaction and also serves as the backup advancing agent. Fitch's current Issuer Default rating for Deutsche Bank is 'BBB'/'F2'. Fitch relies on the master servicer, Wells Fargo & Company (A+/F1), which is currently the primary advancing agent, as a direct counterparty.

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

No third-party due diligence was provided or reviewed 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

The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

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