KBRA Upgrades Three Ratings and Affirms All Other Ratings for FREMF 2018-K80
24 Jan 2025 | New York
KBRA upgrades the ratings of three classes and affirms all other outstanding ratings for FREMF 2018-K80, a $1.3 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The rating actions follow a surveillance review of the transaction, which has exhibited an overall improvement in credit metrics since KBRA's last ratings change. In addition, the rating actions reflect transaction deleveraging from loan defeasances and amortization.
As of the December 2024 remittance period, there is one specially serviced loan (6.5% of the pool balance) which is 90+ days delinquent. KBRA has identified three loans (12.1%) as K-LOCs, including the specially serviced asset. These include:
Two top 10 loans:
- Riverfront Towers (2nd largest, 6.5%, 7.5% estimated loss severity)
- The Village Crossed Loan Portfolio (3rd largest, 5.0%)
The remaining K-LOC does not have an estimated loss and represents 0.6% of the pool.
Excluding the K-LOC with an estimated loss, the transaction’s WA KLTV is 98.8%, compared to 122.0% at KBRA's last ratings change, and 117.9% at securitization. The KDSC is 1.52x, compared to 1.29x at KBRA's last ratings change and 1.34x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class A-M to AA+ (sf) from AA- (sf)
- Class B to A (sf) from A- (sf)
- Class C to BBB (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.