Morningstar DBRS Confirms All Credit Ratings of BANK 2018-BNK13
CMBSDBRS, Inc. (Morningstar DBRS) confirmed all credit ratings on the classes of Commercial Mortgage Pass-Through Certificates, Series 2018-BNK13 issued by BANK 2018-BNK13 as follows:
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (low) (sf)
-- Class X-A at AAA (sf)
-- Class X-B at A (sf)
-- Class X-D at BBB (sf)
-- Class X-E at BB (sf)
-- Class X-F at B (sf)
The trends on Classes D, E, F, X-D, X-E, and X-F are Negative. The trends on all remaining classes are Stable.
The credit rating confirmations and Stable trends reflect the relatively stable performance of the majority of the loans in the pool since the previous credit rating action in August 2024, as indicated by the pool's weighted-average (WA) debt service coverage ratio (DSCR) of 2.15 times (x), per the June 2025 remittance report, which is a slight increase from the July 2024 remittance report figure of 2.06x. The Negative trends for Classes D, E, F, X-D, X-E, and X-F reflect the increased credit risk tied to the specially serviced loan, Regal Cinemas Lincolnshire (Prospectus ID#17, 1.8% of the pool), which Morningstar DBRS analyzed with a liquidation scenario, resulting in a full loss to the loan. Morningstar DBRS' liquidated losses eroded nearly half of the balance of the unrated Class G certificate, reducing the credit support to the junior bonds in the transaction.
As of the June 2025 remittance report, 58 of the original 62 loans remain in the pool, representing a collateral reduction of 15.0% since issuance, with two loans, representing 0.7% of the pool, that are fully defeased. There are seven loans, representing 10.9% of the pool, that are currently being monitored on the servicer's watchlist and one loan, representing 1.8% of the pool, in special servicing. With this review, Morningstar DBRS analyzed loans exhibiting declining performance trends with elevated probabilities of default (PODs) and/or stressed loan-to-value ratios (LTVs) to increase the expected loss (EL) at the loan level, as applicable.
The pool is concentrated by property type with retail, office, and multifamily properties representing 39.9%, 39.2%, and 11.1% of the pool, respectively. The majority of office properties secured in this transaction continue to perform as expected, reporting a WA DSCR of 2.34x as of the June 2025 remittance report. However, two of the eight nondefeased loans secured by office properties exhibited lower net cash flows (NCFs) since issuance. Morningstar DBRS analyzed both of these loans with an additional stress in this review.
The only loan in special servicing, Regal Cinemas Lincolnshire, is secured by a 75,000-square-foot movie theater complex in Lincolnshire, Illinois. The property's former movie theater tenant, Regal Cinemas, vacated in February 2023 after filing for bankruptcy the year prior. This led to the loan's transfer to special servicing in May 2023 because of imminent monetary default. The borrower has not made any loan payments since the loan's transfer. Per servicer commentary, the trust successfully bid for the property in a foreclosure sale in February 2025, with deed transfer completed in May 2025. The property was re-appraised in May 2024 at $2.7 million, representing a 90% decline from the issuance value of $26.3 million. In the analysis for the review, Morningstar DBRS liquidated the loan with a haircut to the most recent appraisal value, resulting in a full loss.
The Ditson Building loan (Prospectus ID#11, 4.7% of the pool) is secured by a Class B office property in Midtown, New York. The loan has been monitored on the servicer's watchlist since January 2021 for low DSCR primarily driven by a continuous decline in occupancy. Multiple tenants vacated the property at their respective lease expirations, including the former largest tenant, TTC USA Consulting (47.2% of net rentable area (NRA)), which vacated in June 2022. Furthermore, VR World NYC LLC (15.1% of NRA), which had a scheduled lease expiration in March 2028, has reportedly gone dark according to the April 2024 rent roll, resulting in the occupancy rate declining to 28.3% from 43.4%. The property is currently occupied by two tenants, Research Foundation of CUNY (18.9% of NRA, lease expires September 2026) and Modernus Walls, LLC (9.4% of NRA, lease expires February 2027). The sponsor is marketing the property for lease, but as of the most recent servicer commentary, the borrower has yet to secure a new tenant. The property is well located in the Grand Central submarket of Manhattan, which reported a Q1 2025 vacancy rate of 12.0%, per Reis; however, given the subject's Class B construction and lack of significant leasing activity to date, Morningstar DBRS does not anticipate better performance in the near term. As a result of the substantial decline in occupancy, the loan reported negative NCF through YE2024, compared with the YE2023 NCF of $612,244 and DSCR of 0.30x. Given the persistent performance challenges, Morningstar DBRS analyzed the loan with an elevated POD penalty and stressed LTV, resulting in an EL that was almost 9x greater than the pool's average.
At issuance, Morningstar DBRS assigned investment-grade shadow ratings for the 1745 Broadway loan (Prospectus ID#1, 11.7% of the pool). With this review, Morningstar DBRS confirms that the performance remains consistent with investment-grade characteristics; therefore, Morningstar DBRS has maintained the associated shadow rating on this loan.
Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.
Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.
A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025), https://dbrs.morningstar.com/research/454196.
Classes X-A, X-B, X-D, X-E, and X-F are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO credit rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.
All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.
Notes:
All figures are in U.S. dollars unless otherwise noted.
The principal methodology is North American CMBS Surveillance Methodology (February 28, 2025), https://dbrs.morningstar.com/research/448963.
Other methodologies referenced in this transaction are listed at the end of this press release.
The credit rating was initiated at the request of the rated entity.
The rated entity or its related entities did participate in the credit rating process for this credit rating action.
Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.
This is a solicited credit rating.
For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings
Please see the 17g-7 disclosure report and/or the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.
As applicable, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS' outlooks and credit ratings are monitored.
DBRS, Inc.
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Chicago, IL 60602 USA
Tel. +1 312 332-3429
The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.
-- North American CMBS Multi-Borrower Rating Methodology (April 9, 2025)/North American CMBS Insight Model v 1.3.0.0, https://dbrs.morningstar.com/research/451739
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024), https://dbrs.morningstar.com/research/439702
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024), https://dbrs.morningstar.com/research/438283
-- Legal Criteria for U.S. Structured Finance (December 3, 2024), https://dbrs.morningstar.com/research/444064
For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.
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