KBRA Downgrades Four Ratings and Affirms All Other Ratings for UBS 2018-C14
8 Nov 2024 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for UBS 2018-C14, a $533.8 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses compared to KBRA’s last rating adjustments in November 2020. Additionally, seven loans (34.1% of the pool balance) among the top 10 have KPOs of Underperform, including three top 10 loans (18.8%) that are identified as K-LOCs.
As of the October 2024 remittance period, there are two specially serviced assets (3.5%), both of which are over 90 days delinquent. KBRA identified 12 K-LOCs (33.1%), including the specially serviced assets. Of the 12 K-LOCs, six (14.4%) have estimated losses. The top 10 K-LOCs include:
- GNL Portfolio (largest, 8.3% of the pool balance)
- Clevelander South Beach (5th largest, 6.0%, 8.8% estimated loss severity)
- 1670 Broadway (7th largest, 4.5%)
Five other K-LOCs (8.4%) have estimated losses:
- Orchard Ridge Corporate Park (2.5% of the pool balance, 13.8% estimated loss severity)
- Four Points – Juneau (2.4%, 5.8%)
- Terrace Pointe (1.2%, 8.7%)
- La Quinta - College Station (1.1%, 35.7%)
- 150 Grand Street (1.1%, 13.4%)
The remaining four K-LOCs, representing 5.9% of the pool balance, do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 94.8%, compared to 107.5% KBRA’s last rating adjustments in November 2020 and 95.7% at securitization. The KDSC is 1.64x, compared to 1.54x at KBRA’s last rating adjustments and 1.71x at securitization.
Details concerning the classes with rating changes are as follows:
- Class F to B (sf) from BB- (sf)
- Class G to CCC (sf) from B- (sf)
- Class X-F to B (sf) from BB- (sf)
- Class X-G to CCC (sf) from B- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.