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KBRA Downgrades Seven Ratings and Affirms All Other Outstanding Ratings for Benchmark 2018-B2

6 Feb 2026   |   New York

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KBRA downgrades the ratings of seven classes of certificates and affirms all other outstanding ratings of Benchmark 2018-B2, a $1.1 billion CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has reflected an increase in KBRA’s estimated losses for 10 K-LOCs (35.8% of the pool balance) since KBRA's last ratings change in February 2025, driven primarily by four K-LOCs (16.3%), and the resulting loss adjusted C/E levels. The downgrades also reflect the possibility that interest shortfalls may affect higher tranches of the capital structure, as the servicer continues to work through the resolution of the specially serviced assets.

As of the January 2026 remittance period, there are seven specially serviced assets (21.6%), of which one (7.5%) is REO, three (7.0%) are in foreclosure, and one (4.7%) is 30+ days delinquent. KBRA identified 13 K-LOCs (42.0%), including the specially serviced assets. Of the K-LOCs, 10 assets (35.8%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 1 Central Park of Lisle OF $79,500 7.5% Y NPM N REO 10/04/2022 $37,182 46.8% 5 Rochester Hotel Portfolio LO $52,886 5.0% N C N Occupancy 10/04/2022 $12,534 23.7% 6 A-1 InterContinental San Francisco LO $50,747 4.8% N C N DSCR 03/20/2020 $28,815 56.8% 10 A-2-C2 Worldwide Plaza OF $50,000 4.7% Y 30+ Y Specially Serviced 06/04/2024 $25,294 50.6% 13 Braddock Metro Center OF $42,140 4.0% Y 90+ N Specially Serviced 01/24/2024 $25,351 60.2% 12 Hotel Indigo & Austin LO $40,284 3.8% N C Y DSCR 10/07/2025 $3,031 7.5% 16 Red Building OF $40,000 3.8% N C N Tenant Issues 08/10/2023 - - 21 90 Hudson OF $30,000 2.8% Y 90+ N Specially Serviced 04/23/2024 $20,953 69.8% 23 Two Harbor Point Square OF $23,448 2.2% N C N Occupancy 12/01/2022 - - 26 Gateway Plaza OF $22,302 2.1% Y C N Specially Serviced 12/03/2024 $4,575 20.5% 41 Marshall's Plaza RT $9,844 0.9% N C N Occupancy 03/25/2025 $1,233 12.5% 56 WAG Lawrenceville RT $3,200 0.3% Y C N Specially Serviced 09/25/2024 - - 57 Rite Aid Johnstown RT $2,554 0.2% Y 90+ N Specially Serviced 11/07/2023 $1,277 50.0% Total K-LOCs $446,905 42.0% $160,244 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. K-LOC Date 1 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
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 91.8%, compared to 93.8% at KBRA's last ratings change and 96.4% at securitization. The KDSC is 1.63x, compared to 1.72x at KBRA's last ratings change and 2.14x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class B to A (sf) from AA- (sf)
  • Class C to BB (sf) from A- (sf)
  • Class D to B- (sf) from BBB (sf)
  • Class E-RR to CCC (sf) from BB- (sf)
  • Class F-RR to CC (sf) from B- (sf)
  • Class G-RR to C (sf) from CCC (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.

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