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KBRA Downgrades Six Ratings, Removes Six Ratings from Watch Downgrade, and Affirms All Other Ratings for COMM 2018-COR3

27 Apr 2026   |   New York

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KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings for COMM 2018-COR3, a $972.7 million CMBS conduit transaction. Simultaneously, KBRA removes six ratings from Watch Downgrade (DN), where they were placed on January 27, 2026. The rating actions follow a surveillance review of the transaction. The downgrades are based on an increase in KBRA’s estimated losses and the resulting loss-adjusted C/E levels. If realized, KBRA’s estimated losses would reduce the principal balances of classes D through H-RR to zero and reduce class C by more than 10%. Realized losses of $15.6 million for the transaction were caused by the January 2024 modification of the 240 East 54th Street loan (3.2% of the pool balance), which resulted in an $11.0 million principal reduction and $4.6 million in cumulative trust advances. Additionally, classes C and below have interest shortfalls totaling $12.0 million, from special servicing fees, ASERs, and interest reductions from the 240 East 54th Street loan. These shortfalls have increased from our last review.

As of the April 2026 remittance period, there are five specially serviced assets (16.2%), of which one (6.7%) is REO, two (6.3%) are in foreclosure, and one (2.2%) is over 90 days delinquent. KBRA identified 15 K-LOCs (42.9%), including the specially serviced assets. Of the 15 K-LOCs, nine (25.2%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 2 Hyatt @ Olive 8 LO $78,000 8.0% N C Y Occupancy 04/07/2020 - - 3 Kingswood Center MU $65,500 6.7% Y REO N REO 07/30/2021 $45,217 69.0% 6 Grand Hyatt Seattle LO $50,000 5.1% N C Y DSCR 03/26/2020 - - 7 315 West 36th Street OF $47,000 4.8% Y FCL N Foreclosure 04/27/2023 $40,056 85.2% 10 Shoreline Center OF $38,300 3.9% N C N Occupancy 09/25/2024 $9,055 23.6% 8 240 East 54th Street RT $31,000 3.2% N C Y Modification 04/07/2020 $21,984 70.9% 16 644 Broadway MU $21,200 2.2% Y 90+ Y Delinquent 05/14/2020 $14,867 70.1% 18 Miramar Town Center MU $16,310 1.7% N C N DSCR 01/25/2024 - - 20 2857 West 8th Street MU $14,300 1.5% Y FCL N Foreclosure 01/25/2023 $8,227 57.5% 21 Gaviidae Common MU $14,200 1.5% N C N Tenant Issues 11/06/2024 - - 25 Fairfield Inn Charleston Airport LO $10,903 1.1% N C N DSCR 04/07/2020 $3,803 34.9% 26 Perimeter Place OF $9,545 1.0% N C N Recent Delinquency 05/28/2025 $845 8.8% 30 Walgreens & Fresenius Portfolio MU $9,450 1.0% Y C N Specially Serviced 08/27/2025 - - 32 Maple Ridge Plaza RT $7,545 0.8% N C N Tenant Issues 02/04/2026 $1,432 19.0% 40 Mall Plaza Apartments MF $3,813 0.4% N C N DSCR 03/31/2025 - - Total K-LOCs $417,064 42.9% $145,485 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 111.8%, compared to 107.3% at KBRA’s last review and 99.7% at securitization. The KDSC is 1.64x, compared to 1.68x at KBRA’s last review and 1.94x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class A-M to A- (sf) from AAA (sf) DN
  • Class B to BB (sf) from A- (sf) DN
  • Class C to CCC (sf) from BB- (sf) DN
  • Class D to CC (sf) from CCC (sf) DN
  • Class E-RR to C (sf) from CC (sf) DN
  • Class X-D to CC (sf) from CCC (sf) DN

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1014665