KBRA Downgrades Three Ratings and Affirms All Other Ratings for Benchmark 2018-B8
14 Nov 2024 | New York
KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings of Benchmark 2018-B8, a $958.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in overall pool performance compared to issuance. The rating downgrades are primarily driven by KBRA's estimated losses on three K-LOCs (13.1% of the pool balance), including two top 10 loans (10.0%).
As of the October 2024 remittance period, there are no specially serviced loans. KBRA identified eight K-LOCs (32.2% of the pool balance). The K-LOCs include:
Four top 10 loans (19.9%), two of which (10.0%) have estimated losses:
- Saint Louis Galleria (4th largest, 5.7%)
- 590 East Middlefield (6th largest, 5.1% of pool balance, 53.1% estimated loss severity)
- 3 Huntington Quadrangle (7th largest, 4.9% of pool balance, 37.3% estimated loss severity)
- Workspace (9th largest, 4.2%)
One additional K-LOC has an estimated loss:
- 5444 & 5430 Westheimer (3.1%, 28.3% estimated loss severity)
The remaining three K-LOCs represent 9.3% of the pool balance.
Excluding the K-LOCs with estimated losses, the WA KLTV is 94.5%, compared to 94.8% at last review and 94.7% at securitization. The KDSC is 1.86x, compared to 1.84x at last review and 1.89x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class E-RR to BB (sf) from BBB- (sf)
- Class F-RR to CCC (sf) from B- (sf)
- Class G-RR to CCC- (sf) from CCC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.