Press Release|CMBS

KBRA Downgrades Three Ratings and Affirms All Other Outstanding Ratings for CGCMT 2018-B2

28 Feb 2025   |   New York

Contacts

KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings for CGCMT 2018-B2, a $934.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in both the number of loans that have been identified as K-LOCs (29.3% of the pool balance) and estimated losses.

As of the February 2025 remittance period, there are three specially serviced loans (12.3%), all of which are in foreclosure. KBRA identified 11 loans (29.3%) as K-LOCs, four of which (15.5%) have estimated losses. These include five of the top 10 loans (19.8%):

  • Park Place East and Park Place West (2nd largest, 5.4% of the pool balance, 50.4% estimated loss severity)
  • Red Building (6th largest, 4.3%)
  • 3rd & Pine Seattle Retail & Parking (7th largest, 3.8%, 47.6%)
  • One Newark Center (9th largest, 3.2%, 36.1%)
  • Braddock Metro Center (10th largest, 3.1%, 27.5%)

The remaining six K-LOCs do not have estimated losses and represent 9.5% of the pool balance.

Excluding K-LOCs with estimated losses, the WA KLTV is 88.1%, compared to 93.6% at last review and 104.1% at securitization. The KDSC is 1.89x, compared to 1.79x at last review and 1.70x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class C to BBB (sf) from A- (sf)
  • Class D to B- (sf) from BBB- (sf)
  • Class X-D to B- (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.

Doc ID: 1008322

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