Morningstar DBRS cuts ratings on BANK 2018-BNK13 CMBS classes

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Morningstar DBRS cuts CMBS ratings

Highlights

Morningstar DBRS downgraded six classes of 2018-BNK13 CMBS due to a $28.6 million projected liquidated loss on the Ditson Building loan, representing 5.1% of the pool.
Pool collateral has declined 22.8% since issuance, with realized losses totaling $13.0 million after Regal Cinemas Lincolnshire disposition and 18.4% of loans now on the servicer’s watchlist.
Rising risk persists in several office and retail loans, including 181 Fremont Street and Town Center Aventura, due to occupancy issues, tenant rollovers, and bankruptcies despite generally stable pool performance.

Ditson Building losses drive rating action

As reported by Morningstar DBRS, six classes of Commercial Mortgage Pass-Through Certificates, Series 2018-BNK13, are downgraded, while several senior classes are confirmed and the trends on Classes C and X-B are changed to Negative from Stable. The agency says the main driver is its higher liquidated loss projection for the Ditson Building loan, which makes up 5.1% of the pool.

Morningstar DBRS estimates liquidated losses of $28.6 million for the Ditson Building exposure, a level that would fully erode the unrated Class G along with rated Class F and part of Class E. That scenario also materially reduces credit support for Classes C and D, helping explain the downgrades and Negative trend assignments on some classes.

The Midtown New York office property has been on the servicer's watchlist since January 2021 because of weak debt service coverage and falling occupancy. Morningstar DBRS says the asset's cash flow is below breakeven, with borrower support covering shortfalls so far, and warns the building could become fully vacant within the next year as the remaining tenants approach lease rollovers.

Pool performance remains mixed across property types

As of the April 2026 remittance report, 56 of the original 62 loans remain in the pool, representing collateral reduction of 22.8% since issuance, with two loans, or 0.8% of the pool, fully defeased. Nine loans, representing 18.4% of the pool, are on the servicer's watchlist and one loan, equal to 0.2% of the pool, is in special servicing.

The transaction has also recorded its first realized losses since the previous review, totaling $13.0 million after the disposition of the Regal Cinemas Lincolnshire loan. The pool remains concentrated in retail, office and multifamily assets, which account for 40.8%, 34.9% and 11.8% of collateral, respectively.

Morningstar DBRS says most loans in the pool remain relatively stable, supported in part by retail-backed assets that have performed well since issuance. Still, it highlights rising risk in several office loans, including 181 Fremont Street in San Francisco and Empire Towers V, where occupancy issues, lease rollover and softer market conditions lead to more stressed assumptions on loan-to-value ratios and default probability.

The agency also flags Town Center Aventura in Florida, a grocery-anchored retail property facing tenant rollover risk and exposure to Saks Off Fifth after its parent company's bankruptcy filing. Even so, Morningstar DBRS says the location's underlying strength and active cash management by the servicer help offset part of that risk.

Our earlier coverage of Fitch’s rating action on the Massachusetts Water Resources Authority (MWRA) detailed the agency’s 'AA+' rating on its 2026 Series C and D general revenue green bonds and the affirmation of the broader credit profile, with Stable and Positive outlooks across different liens. We also highlighted MWRA’s plan to keep annual rate adjustments modest while funding a largely debt-financed capital program, alongside improving leverage trends that Fitch said could support future positive rating movement.

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