KBRA Places the Ratings of Six Classes for COMM 2018-COR3 on Watch Downgrade
27 Jan 2026 | New York
KBRA places the ratings of six classes of COMM 2018-COR3, a $973.7 million CMBS conduit transaction, on Watch Downgrade (DN). The Watch placements are based on an increase in interest shortfalls primarily from non-recoverable interest from three (13.7% of the pool balance) of the five specially serviced assets in the pool. Currently, interested shortfalls are affecting up to and including the Class B certificates. KBRA considered the likelihood of interest shortfalls continuing during the resolution of the specially serviced assets.
As of the January 2026 remittance, 15 loans (46.2%) have been identified as K-LOCs, of which five (16.2%) are specially serviced. Of the specially serviced K-LOCs, two are delinquent (3.7%), two are in foreclosure (5.8%), and one is REO (6.7%).
KBRA will continue to monitor the transaction and the underlying loans' performance and will seek to resolve or update the Watch Downgrade status within 90 days.
Details concerning the classes that have been placed on Watch are as follows:
- Class AM to AAA (sf) DN from AAA (sf)
- Class B to A- (sf) DN from A- (sf)
- Class C to BB- (sf) DN from BB- (sf)
- Class D to CCC (sf) DN from CCC (sf)
- Class E-RR to CC (sf) DN from CC (sf)
- Class X-D to CCC (sf) DN from CCC (sf)
To access ratings and relevant documents, click here.