KBRA Downgrades Two Ratings and Affirms All Other Ratings for CD 2018-CD7
14 Jun 2024 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings of CD 2018-CD7, a $690.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in specially serviced assets (14.4% of the pool balance) and loans identified as K-LOCs (17.8%) since last review.
As of the May 2024 remittance period, there are four specially serviced assets (14.4%), including one loan (4.6%) that is in foreclosure and one loan (1.4%) that is 30+ days delinquent. KBRA identified seven K-LOCs (17.8%), including the specially serviced assets. Two of the K-LOCs (6.1%) have estimated losses. The K-LOCs include two top 10 loans (11.9%):
- Bank of America Center (2nd largest, 7.3% of the pool balance)
- NoLIta Multifamily Portfolio (8th largest, 4.6%, 13.5% estimated loss severity)
One additional K-LOC has an estimated loss:
- Rohnert Park Center (1.5%, 12.0%)
The remaining four K-LOCs do not have estimated losses and represent 4.4% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 97.2%, compared to 99.2% at last review and 96.2% at securitization. The KDSC is 1.69x, compared to 1.73x at last review and 1.77x at securitization.
Details concerning the classes with rating changes are as follows:
- Class F-RR to BB- (sf) from BB (sf)
- Class G-RR to B- (sf) from B+ (sf)
To access rating and relevant documents, click here.
Click here to view the report.