KBRA Downgrades Three Ratings and Affirms All Other Outstanding Ratings for CGCMT 2018-B2
28 Feb 2025 | New York
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.