KBRA Places the Ratings of Five Classes of UBS 2018-C9 on Watch Downgrade
3 Oct 2025 | New York
KBRA places the ratings of five classes of UBS 2018-C9, a CMBS conduit transaction, on Watch Downgrade.
The Watch placements are based on an increase in interest shortfalls and concentration of specially serviced assets and K-LOCs. Currently, interest shortfalls are affecting up to and including the Class C certificates. KBRA considered the likelihood of interest shortfalls continuing and reaching higher in the capital structure during the resolution of the specially serviced assets.
As of the September 2025 remittance period, five loans (25.1% of the pool balance) are in special servicing, including three REO assets (15.4%). KBRA identified six K-LOCs (33.5%), inclusive of the specially serviced assets. The 22 West 38th Street REO (4.7%) and the Radisson Oakland loan (3.7%) were deemed non-recoverable by the servicer in September 2025, driving interest shortfalls further up the capital structure compared to prior months. Additionally, the IMG Building REO (2.1%) was deemed non-recoverable in May 2024.
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 with ratings place on Watch are as follows:
- Class B to A (sf) DN from A (sf)
- Class C to BBB- (sf) DN from BBB- (sf)
- Class D to B- (sf) DN from B- (sf)
- Class D-RR to CCC (sf) DN from CCC (sf)
- Class E-RR to CC (sf) DN from CC (sf)
To access ratings and relevant documents, click here.