Press Release|CMBS
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KBRA Downgrades One Rating and Affirms All Other Ratings for CD 2018-CD7

12 Jun 2026   |   New York

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KBRA downgrades the rating of one class of certificates and affirms all other outstanding ratings of CD 2018-CD7, a $667.9 million CMBS conduit transaction. The rating action follows a surveillance review of the transaction, which has exhibited pool performance generally in line with KBRA's last ratings change in June 2025. However, the rating action is based on concerns regarding outstanding servicer advances on the NoLIta Multifamily Portfolio loan (4.8% of the pool balance) and the potential for interest shortfalls to reach higher in the capital structure.

As of the May 2026 remittance period, there are four specially serviced assets (14.7%), including two (6.2%) that are in foreclosure and one (0.9%) that is 90+ days delinquent. KBRA identified five K-LOCs (16.0%), including the specially serviced assets. Two of the K-LOCs (12.4%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 2 Bank of America Center OF $50,500 7.6% Y C N Specially Serviced 08/30/2023 $15,165 30.0% 8 NoLIta Multifamily Portfolio MF $32,000 4.8% Y FCL N Foreclosure 05/22/2020 $14,854 46.4% 22 Rohnert Park Center RT $9,565 1.4% Y FCL Y Foreclosure 05/06/2020 - - 26 Kinston Portfolio LO $8,722 1.3% N C Y Occupancy 10/25/2018 - - 33 Cliffs of Macon MF $6,027 0.9% Y 90+ N Specially Serviced 10/07/2025 - - Total K-LOCs $106,813 16.0% $30,019 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 the K-LOCs with estimated losses, the transaction’s WA KLTV is 96.0%, compared to 94.3% at KBRA's last ratings change in June 2025 and 96.2% at securitization. The KDSC is 1.69x, which is in line with KBRA's last rating change and down from 1.77x at securitization.

Details concerning the class with a rating change are as follows:

  • Class E-RR to BB (sf) from BBB- (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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