KBRA Downgrades Six Ratings and Affirms All Other Outstanding Ratings for UBS 2018-C9
28 Feb 2025 | New York
KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings of UBS 2018-C9, a $750.2 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses from all seven K-LOCs (33.4% of the pool balance) and the resulting loss adjusted C/E levels. The rating actions also consider the transaction deleveraging from loan payoffs, amortization and defeasance.
As of the February 2025 remittance period, there are five specially serviced loans (25.1%), one of which is REO (2.1%), two (8.4%) are in foreclosure, and one (6.0%) is 60+ days delinquent. KBRA has identified seven K-LOCs (33.4%), including the specially serviced assets, all of which have estimated losses. This includes:
Four top 10 loans (25.3%):
- Aspen Lake Office Portfolio (largest, 8.7% of pool balance, 21.9% estimated loss severity)
- City Square and Clay Street (3rd largest, 6.0%, 38.9%)
- Midwest Hotel Portfolio (4th largest, 6.0%, 26.9%)
- 22 West 38th Street (7th largest, 4.6%, 52.7%)
Three (8.1%) other K-LOCs have estimated losses:
- Radisson Oakland (3.7%, 58.6%)
- Park Place at Florham Park (2.3%, 10.4%)
- The IMG Building (2.1%, 88.1%)
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 92.6%, compared to 104.6% at last review and 101.2% at securitization. The KDSC is 1.54x compared to 1.57x at last review and 1.79x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class B to A (sf) from AA (sf)
- Class C to BBB- (sf) from A- (sf)
- Class D to B- (sf) from BBB (sf)
- Class D-RR to CCC (sf) from BB+ (sf)
- Class E-RR to CC (sf) from B (sf)
- Class F-RR to C (sf) from CCC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.