KBRA Downgrades Five Ratings and Affirms All Other Outstanding Ratings for UBS 2018-C10
9 May 2025 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of UBS 2018-C10, a $658.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited increases in the number of specially serviced assets and estimated losses since last review. The largest loan in the pool, NYC REIT Mixed-Use Portfolio (7.6% of the pool balance), was the primary contributor to the transaction’s increased exposure to specially serviced assets and estimated losses.
As of the April 2025 remittance period, there are five specially serviced assets (13.9%), including two (3.5%) that are in foreclosure and one loan (2.2%) that is over 90 days delinquent. KBRA identified nine K-LOCs (22.1%), including the specially serviced assets. The K-LOCs include two (11.4%) top 10 loans:
- NYC REIT Mixed-Use Portfolio (largest, 7.6% of the pool balance, 43.6% estimated loss severity)
- Manchester Highlands (7th largest, 3.8%)
Two (3.5%) additional K-LOCs have estimated losses:
- Port Atwater Parking (3.1%, 55.2%)
- CVS Goshen (0.5%, 13.3%)
The remaining five K-LOCs, representing 7.2% of the pool balance, do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 105.1%, compared to 107.1% at last review and 103.2% at securitization. The KDSC is 1.53x, compared to 1.57x at last review and 1.61x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D to BBB- (sf) from BBB (sf)
- Class D-RR to BB- (sf) from BBB- (sf)
- Class E-RR to B- (sf) from BB- (sf)
- Class F-RR to CCC (sf) from B (sf)
- Class X-D to BBB- (sf) from BBB (sf)
To access ratings and relevant documents, click here.
Click here to view the report.