KBRA Downgrades Six Ratings and Affirms All Other Ratings for UBS 2019-C18
12 Dec 2024 | New York
KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings of UBS 2019-C18, a $714.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in loans identified as K-LOCs (22.2% of pool balance) and KBRA's estimated losses on four of them (12.3%), including two top 10 loans (8.5%).
As of the November 2024 remittance period, there are four specially serviced assets (12.5%), including one that is past maturity (3.6%), one in foreclosure (2.0%), one that is 30+ days delinquent (1.5%) and one that remains current (4.1%). In addition, the largest loan (4.9%) transferred to the special servicer in November 2024 after failing to payoff at maturity, but the transfer has not been reflected as of the most recent remittance. KBRA identified eight K-LOCs (22.2%), including the specially serviced assets. These include:
Three top 10 loans (12.6%):
- 225 Bush Street (largest, 4.9% of the pool, 25.0% estimated loss severity)
- Wyndham National Hotel Portfolio (7th largest, 4.1%)
- United Healthcare Office (9th largest, 3.6%, 15.9%)
Two additional K-LOCs have estimated losses:
- Redwood Technology Center (2.3%, 26.1%)
- 1413 Germantown Avenue (1.5%, 6.9%)
The remaining three K-LOCs do not have estimated losses and represent 5.8% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 97.7%, compared to 98.7% at last review and 97.6% at securitization. The WA KDSC is 2.15x, compared to 2.17x at last review and 2.27x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class E to BBB- (sf) from BBB (sf)
- Class F to BB- (sf) from BB (sf)
- Class G to B- (sf) from B (sf)
- Class X-D to BBB- (sf) from BBB (sf)
- Class X-F to BB- (sf) from BB (sf)
- Class X-G to B- (sf) from B (sf)
To access ratings and relevant documents, click here.
Click here to view the report.