KBRA Upgrades Three Ratings and Affirms All Other Ratings for FREMF 2018-K76
17 Jan 2025 | New York
KBRA upgrades the ratings of three classes and affirms all other outstanding ratings for FREMF 2018-K76, a $1.3 billion CMBS multi-borrower transaction. All loans were originated in conjunction with the Federal Home Loan Mortgage Corporation's (Freddie Mac) K-Deal program. The rating actions follow a surveillance review of the transaction, which has exhibited an improvement in pool performance since last ratings change in August 2022.
As of the December 2024 remittance period, there are no delinquent or specially serviced loans; however, KBRA identified five K-LOCs (8.0% of the pool balance), one of which (1.0%) has an estimated loss. The KLOCs include:
One top 10 loan:
- Assisted Living Crossed Portfolio (7th largest, 3.4%)
One with an estimated loss:
- River Pointe Apartments (1.0%, 20.3% estimated loss severity)
Excluding the K-LOC with an estimated loss, the transaction's WA KLTV is 95.8%, compared to 116.6% at KBRA's last ratings change and 117.1% at securitization. The KDSC is 1.73x, compared to 1.44x at KBRA's last ratings change and 1.42x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class A-M to AA+ (sf) from AA- (sf)
- Class B to A+ (sf) from A (sf)
- Class C to BBB+ (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.