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KBRA Downgrades Two Ratings and Affirms All Other Ratings for MSC 2018-H4

13 Nov 2026   |   New York

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KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for MSC 2018-H4, a $699.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since KBRA's last ratings change in December 2021.

As of the October 2026 remittance period, there is one specially serviced asset (4.2% of the pool balance), which is REO. KBRA identified 12 loan groups as K-LOCs (21.4%), including the specially serviced asset. Of the K-LOCs, three (7.2%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 5A1 Fordham Medical Office Portfolio MU $39,450 5.6% N C Y Prior SS 08/12/2024 - - 6 300 North Greene OF $29,168 4.2% Y REO Y REO 09/14/2020 $14,951 51.3% 17 North Atlanta Hotel Portfolio LO $13,979 2.0% N C Y DSCR 09/15/2026 - - 20 One Sound Shore OF $12,857 1.8% N C N Lease Rollover 07/13/2020 - - 23 Fairfield Inn Perimeter Center LO $11,560 1.7% N C Y Modification 10/13/2026 $5,370 46.5% 26 Fairfield Inn Buckhead LO $9,846 1.4% N C Y Modification 10/13/2026 $3,209 32.6% 28 1714 West Division Street MU $8,786 1.3% N C N Occupancy 05/11/2023 - - 30 Park South Apartments MF $7,549 1.1% N C N DSCR 08/13/2024 - - 35 AVR Homewood Suites Lubbock LO $7,029 1.0% N C N DSCR 04/15/2020 - - 43 1510 East Bell Road MU $3,955 0.6% N C N Occupancy 03/13/2024 - - 48 Foothills Corporate Center OF $3,035 0.4% N C N Lease Rollover 05/07/2021 - - 49 216 Chartres Street MF $2,450 0.4% N C N DSCR 10/13/2020 - - Total K-LOCs $149,664 21.4% $23,530 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 91.9%, compared to 96.9% at last review and 97.6% at securitization. The KDSC is 1.71x, compared to 1.62x at last review and 1.69x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class E-RR to BB (sf) from BBB- (sf)
  • Class F-RR to B- (sf) from B (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.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties 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 US 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. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. 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.

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