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KBRA Downgrades Six Ratings and Affirms All Other Outstanding Ratings for Benchmark 2018-B1

16 Dec 2025   |   New York

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KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings of Benchmark 2018-B1, an $821.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has reflected an increase in KBRA’s estimated losses for seven K-LOCs (27.1% of the pool balance) since KBRA's last ratings change in December 2024, driven primarily by two top 10 K-LOCs (14.6%). The rating actions also reflect transaction deleveraging resulting from loan payoffs, amortization, and defeasance.

As of the November 2025 remittance period, there are six specially serviced assets (22.8%), of which two are REO (5.5%)and one (8.5%) is in foreclosure. KBRA identified 10 K-LOCs (36.6%) including the specially serviced assets. Of the K-LOCs, seven assets (27.1%) have estimated losses. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 1 90 Hudson OF $70,000 8.5% Y 90+ N Foreclosure 04/23/2024 $48,890 69.8% 2 Valencia Town Center MU $51,733 6.3% N C N Occupancy 10/02/2025 - - 5 Worldwide Plaza OF $50,000 6.1% Y C Y Specially Serviced 06/04/2024 $24,910 49.8% 14 Rochester Hotel Portfolio LO $35,429 4.3% N C N Occupancy 10/04/2022 $8,356 23.6% 17 156-168 Bleecker RT $34,000 4.1% Y 90+ N REO 11/05/2020 $20,522 60.4% 24 Two Harbor Point Square OF $14,019 1.7% N C N Occupancy 12/01/2022 - - 27 Starwood Capital Group Hotel Portfolio LO $13,366 1.6% Y C Y Specially Serviced 03/25/2025 $2,002 15.0% 30 Metro Center V OF $12,303 1.5% N C N Occupancy 04/10/2025 - - 31 1114-1126 Lake Street RT $11,068 1.3% Y 90+ N REO 04/16/2020 $4,996 45.1% 33 Tri State Neighborhood Center RT $8,745 1.1% Y NPM N Specially Serviced 04/05/2022 $7,766 88.8% Total K-LOCs $300,661 36.6% $117,441 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. K-LOC Date 1 KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balan ce SS Loan Status Mod (Y/N) Primary K-LOC Reason
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 99.8%, compared to 102.7% at KBRA's last ratings change and 97.8% at securitization. The KDSC is 1.57x, compared to 1.64x at KBRA's last ratings change and 2.12x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class C to BBB- (sf) from A- (sf)
  • Class D to B (sf) from BB (sf)
  • Class E to CCC (sf) from B- (sf)
  • Class F-RR to CC (sf) from CCC (sf)
  • Class X-D to B (sf) from BB (sf)
  • Class X-E to CCC (sf) from B- (sf)

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.

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