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KBRA Downgrades Four Ratings, Removes Five Ratings from Watch Downgrade, and Affirms All Other Ratings for CGCMT 2018-B2

27 May 2026   |   New York

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KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for CGCMT 2018-B2, a $912.1 million CMBS conduit transaction. Simultaneously, KBRA removes five ratings from Watch Downgrade (DN), where they were placed on February 27, 2026. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in interest shortfalls, primarily from ASERs and trust expenses associated with three (12.4% of the pool balance) of the 11 K-LOCs (26.6%) in the pool. Classes C and below have interest shortfalls totaling $5.0 million. Additionally, estimated losses have increased compared to KBRA's last ratings change in February 2025 from loans that have been identified as K-LOCs. If realized, KBRA's estimated losses would reduce the principal balance of classes E through G to zero and reduce class D by 4.0%.

As of the May 2026 remittance period, there are three specially serviced loans (12.4%), of which one (3.1%) is REO, one (5.4%) is in foreclosure, and one (3.9%) is over 90 days delinquent. KBRA identified 11 loans (26.6%) as K-LOCs, including the specially serviced assets. Seven of the K-LOCs (21.6%) have estimated losses. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 2 Park Place East and Park Place West OF $49,553 5.4% Y FCL N Foreclosure 05/08/2023 $31,830 64.2% 9 3rd & Pine Seattle Retail & Parking MU $35,200 3.9% Y 90+ N Specially Serviced 02/24/2021 $20,364 57.9% 13 2301 Renaissance Boulevard OF $29,000 3.2% N C N Tenant Issues 02/22/2024 $8,242 28.4% 11A1 One Newark Center OF $28,894 3.2% N C N DSCR 10/05/2022 $7,235 25.0% 12A2 Braddock Metro Center OF $28,423 3.1% Y REO N Specially Serviced 01/24/2024 $17,769 62.5% 19 Galleria Commons RT $18,747 2.1% N C N DSCR 02/23/2023 - - 26A3 Warwick Mall RT $16,458 1.8% N C N Tenant Issues 04/24/2020 $1,804 11.0% 31 Arapaho & Gessner MU $12,299 1.3% N C N Occupancy 06/05/2025 - - 33 530 Spring Retail & Parking MU $9,677 1.1% N C Y DSCR 10/31/2024 $3,393 35.1% 34A1A Two Harbor Point Square OF $9,411 1.0% N C N Occupancy 12/01/2022 - - 46 452 West Broadway RT $5,000 0.5% N C Y Tenant Issues 10/07/2025 - - Total K-LOCs $242,662 26.6% $90,637 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. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding K-LOCs with estimated losses, the WA KLTV is 83.5%, compared to 88.1% at KBRA's last ratings change in February 2025 and 104.1% at securitization. The KDSC is 1.86x, compared to 1.89x at KBRA's last rating change and 1.70x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class A-S to AAA (sf) from AAA (sf) DN
  • Class B to A- (sf) from AA- (sf) DN
  • Class C to BB (sf) from BBB (sf) DN
  • Class D to CCC (sf) from B- (sf) DN
  • Class X-D to CCC (sf) from B- (sf) DN

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publications

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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