KBRA Downgrades Three Ratings and Affirms All Other Ratings for Benchmark 2020-B18
28 Jun 2024 | New York
KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings of Benchmark 2020-B18, a $904.6 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from three K-LOCs (8.8% of the pool balance).
As of the June 2024 remittance period, there is one specially serviced asset (3.5% of the pool balance), which is REO. KBRA identified six K-LOCs (14.7%), including the specially serviced asset. These include:
Two top 10 loans:
- 420 Taylor Street (9th largest, 3.9% of pool balance)
- 3000 Post Oak (10th largest, 3.9%, 79.4% estimated loss severity)
Two additional K-LOCs have estimated losses:
- Brass Professional Center (3.5%, 42.5%)
- 84 14th Street (1.4%, 23.0%)
The remaining two K-LOCs represent 2.1% of the pool and do not have estimated losses.
Excluding K-LOCs with losses, the transaction’s WA KLTV is 83.8%, compared to 84.4% at last review and 87.7% at securitization. The WA KDSC is 2.88x, compared to 2.92x at last review and 2.88x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D to BBB- (sf) from BBB+ (sf)
- Class E to BB- (sf) from BBB- (sf)
- Class X-D to BB- (sf) from BBB- (sf)
To access rating and relevant documents, click here.
Click here to view the report.