KBRA Places Five Ratings for CGCMT 2018-B2 on Watch Downgrade
27 Feb 2026 | New York
KBRA places the ratings of five classes of certificates for CGCMT 2018-B2, a $922.5 million CMBS conduit transaction, on Watch Downgrade (DN). The Watch placements are based on an increase in interest shortfalls which are affecting up to and including the Class B certificates as of the February 2026 reporting period. The increase in interest shortfalls is partly attributed to an updated ARA for the Park Place East and Place West loan (5.4% of the pool balance). An ARA of $26.7 million was effectuated on the $49.7 million loan in December 2025. The transaction has a cumulative appraisal reduction amount of $62.2 million from three specially serviced assets (12.3%) and monthly ASERs from these assets have contributed to interest shortfalls. Additionally, there was a negative interest adjustment of $906,175 in January associated with the 2301 Renaissance Boulevard loan (3.1%). The loan is identified as a K-LOC but is current in payment and not specially serviced. In placing the ratings on Watch Downgrade (DN), KBRA also considered the potential for continuing shortfalls from recurring ASERs and the potential for additional interest shortfalls associated with future interest adjustments.
As of the February 2026 remittance period, there are three specially serviced loans (12.3%), of which one (3.8%) of which is delinquent and two (8.5%) are in foreclosure. KBRA identified 11 loans (26.4%) as K-LOCs, including the specially serviced assets.
KBRA will continue to monitor the transaction and the underlying loans' performance and will seek to resolve or update the Watch Downgrade status within 90 days.
Details concerning the classes with ratings placed on Watch are as follows:
- Class A-S to AAA (sf) DN from AAA (sf)
- Class B to AA- (sf) DN from AA- (sf)
- Class C to BBB (sf) DN from BBB (sf)
- Class D to B- (sf) DN from B- (sf)
- Class X-D to B- (sf) DN from B- (sf)
To access ratings and relevant documents, click here.