KBRA Downgrades Five Ratings and Affirms All Other Ratings for Benchmark 2018-B1
16 Dec 2024 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of Benchmark 2018-B1, a $830.2 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA’s estimated losses for four K-LOCs (18.3% of the pool balance), of which two are REO (5.5%). The rating actions also consider the transaction deleveraging from loan payoffs, amortization and defeasance.
As of the November 2024 remittance period, there are four specially serviced assets (12.6%), of which two are REO (5.5%), one (1.1%) is in foreclosure, and one (6.0%) is 30+ days delinquent. KBRA identified seven K-LOCs (27.1%) including the specially serviced assets. These include:
Three top 10 loans (18.8%):
- 90 Hudson (largest, 8.4% of the pool balance, 29.6% estimated loss severity)
- Worldwide Plaza (3rd largest, 6.0%)
- Rochester Hotel Portfolio (8th largest, 4.4%, 21.5%)
Two other K-LOCs have an estimated loss:
- 156-168 Bleecker (4.1%, 57.2%)
- 1114-1126 Lake Street (1.4%, 31.2%)
The remaining two K-LOCs represent 2.8% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 102.7%, compared to 102.1% at last review and 97.8% at securitization. The KDSC is 1.64x, compared to 1.78x at last review and 2.12x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class D to BB (sf) from BBB-(sf)
- Class E to B- (sf) from BB- (sf)
- Class F-RR to CCC (sf) from B- (sf)
- Class X-D to BB (sf) from BBB- (sf)
- Class X-E to B- (sf) from BB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.