Press Release|CMBS

KBRA Downgrades Three Ratings and Affirms All Other Outstanding Ratings for BENCHMARK 2018-B3

22 Mar 2024   |   New York


KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings for BENCHMARK 2018-B3, a $923.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization. The rating actions also reflect KBRA's estimated losses for four K-LOCs (14.5%) and the resulting loss adjusted C/E levels.

As of the March 2024 remittance period, there are three specially serviced assets (7.8% of the pool balance), of which two (7.4%) are in foreclosure and one (0.4%) is 90+ days delinquent. KBRA identified eight K-LOCs (28.1%), four of which (14.5%) have estimated losses. This includes:

Four of the top 10 non-defeased loans (19.6%):

  • 6420 Wilshire (largest, 6.7%, 24.9% estimated loss severity)
  • InterContinental San Francisco (7th largest, 4.8%)
  • Greystone Park and The Meridian at Deerwood Park (9th largest, 4.1%, 18.0%)
  • Rochester Hotel Portfolio (10th largest, 4.0%)

Two other K-LOCs have estimated losses:

  • 315 West 36th Street (3.3%, 49.9%)
  • The Stimson Building (0.4%, 86.8%)

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 101.5%, compared to 109.3% at last review and 101.2% at securitization. The KDSC is 1.62x, compared to 1.63x at last review and 1.76x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class F-RR to BB (sf) from BB+ (sf)
  • Class G-RR to B (sf) from BB- (sf)
  • Class H-RR to CCC (sf) from B- (sf)

To access rating and relevant documents, click here.

Click here to view the report.

Related Publication



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003643

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