Press Release|CMBS

KBRA Upgrades Five Ratings and Affirms All Other Ratings for CGCMT 2018-TBR

5 Apr 2024   |   New York


KBRA upgrades five ratings and affirms all other ratings for CGCMT 2018-TBR, a CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which exhibits significant improvement in performance compared to KBRA’s last review and securitization. The collateral hotel’s performance has improved notably year-over-year following a major renovation of the property that began in 2019. The ratings adjustments also reflect the capital improvements to the resort as well as the inherent value of the land underlying the property which the loan sponsor owns in fee.

The collateral for the transaction is a non-recourse, first-lien mortgage loan secured by the borrower’s fee simple interest in the Turtle Bay Resort, a six-story, 452-key, full-service hotel and resort in Hawaii on the island of Oahu. The floating-rate loan has an outstanding principal balance of $189.1 million ($418,363 per key) as of March 2024. The borrower exercised its fifth and final maturity extension option in December 2023, pushing the final maturity to December 2024.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $27.4 million and a KBRA value of $273.9 million ($605,882 per key). The resulting in-trust KLTV is 69.1%, compared to 118.4% at last review and 98.6% at securitization. KBRA revised its KPO to Outperform from Underperform based on the improvement in property cash flow and decrease in KLTV since last review and issuance.

The details of certificate classes with ratings changes are as follows:

  • Class B to AAA (sf) from AA (sf)
  • Class C to AA+ (sf) from A+ (sf)
  • Class D to A+ (sf) from BBB+ (sf)
  • Class E to BBB (sf) from BB- (sf)
  • Class F to BB (sf) from B- (sf)

To access rating and relevant documents, click here.

Click here to view the report.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003807

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