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KBRA Downgrades Eight Ratings and Affirms All Other Outstanding Ratings for UBS 2018-C12

11 Jul 2025   |   New York

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KBRA downgrades the ratings of eight classes of certificates and affirms all other outstanding ratings of UBS 2018-C12, a $664.1 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 June 2024 including an increase in realized and projected losses, as well as an increase in the number of specially serviced loans. The rating changes also reflect the likelihood of interest shortfalls continuing to reach higher in the capital stack as the special servicer works out the challenged assets in the pool.

As of the June 2025 remittance period, there are eight specially serviced assets (19.7% of the pool balance), of which three (4.5%) are REO, one (1.3%) is in foreclosure. KBRA identified 14 K-LOCs (31.7%), including the specially serviced assets. Of the K-LOCs, eight (19.9%) have estimated losses. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 2A1 Riverfront Plaza OF $44,999 6.8% Y C Specially Serviced 03/07/2024 $7,825 17.4% 5A1 Aspect RHG Hotel Portfolio LO $31,563 4.8% Y C Specially Serviced 09/02/2020 $12,441 39.4% 7 Savi Ranch Center RT $22,866 3.4% N C Recent Delinquency 12/11/2024 - - 6A2A4 20 Times Square MU $21,774 3.3% N NPM Modification 02/12/2021 - - 9 Copeland Tower & Stadium Place OF $18,662 2.8% Y 90+ REO 05/28/2020 $12,960 69.4% 22 Warner Courtyards OF $11,500 1.7% N C Occupancy 10/03/2024 $1,202 10.4% 30 Bank of America Center OF $10,000 1.5% Y 30+ Specially Serviced 08/30/2023 - - 32 Manchester Highlands RT $10,000 1.5% N C Occupancy 11/13/2023 - - 33 11 S. LaSalle Street RT $9,630 1.5% N C Occupancy 03/13/2023 $630 6.5% 34 Pelican Walk RT $8,833 1.3% Y 60+ Specially Serviced 06/24/2024 - - 41 Holiday Inn Houston SW – Sugar Land Area LO $6,861 1.0% Y 90+ Specially Serviced 5/14/2020 $4,266 62.2% 48 Holiday Inn Express & Suites Jackson LO $5,578 0.8% N C DSCR 04/09/2024 - - 54 Kensington Office Plaza OF $4,333 0.7% N C Occupancy 12/05/2024 $710 16.4% 58 24 Hour Fitness - Cedar Hill RT $4,235 0.6% Y 90+ REO 04/08/2020 $110 2.6% Total K-LOCs $210,834 31.7% $40,143 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 Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding K-LOCs with estimated losses, the transaction’s WA KLTV is 96.0%, compared to 101.0% at KBRA’s last ratings change and 97.3% at securitization. The KDSC is 1.70x, compared to 1.74x at KBRA’s last ratings change and 1.93x at securitization.

Details concerning the ratings adjustments are as follows:

  • Class B to AA- (sf) from AA (sf)
  • Class C to BBB- (sf) from A- (sf)
  • Class D to BB (sf) from BBB- (sf)
  • Class D-RR to B- (sf) from B (sf)
  • Class E-RR to CCC (sf) from CCC+ (sf)
  • Class F-RR to CC (sf) from CCC (sf)
  • Class G-RR to C (sf) from CC (sf)
  • Class X-D to BB (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: 1010327

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