Fitch downgrades WECM 2018-C44, UBS 2018-C10: outlooks negative

Fitch downgrades WECM 2018-C44, UBS 2018-C10: outlooks negative

Fitch Revises Outlooks and Downgrades Ratings for UBS and WFCM CMBS Transactions

On March 27, 2025, Fitch Ratings downgraded the ratings for UBS 2018-C10 and UBS 2018-C15, revising their outlooks to "Negative". The downgrades reflect evolving credit conditions and potential risks within the commercial mortgage-backed securities (CMBS) market, though specific triggers for the actions were not detailed in the ratings agency's disclosures. These transactions, issued by UBS Commercial Mortgage Trust, are part of the 2018 CMBS vintage, a cohort that has faced increasing scrutiny amid broader economic uncertainties.

Separately, Fitch revised the outlook for WFCM 2018-C44 to "Negative" on January 25, 2021. While no concurrent rating downgrade was mentioned, the negative outlook signals heightened concerns about the transaction's creditworthiness. The WFCM 2018-C44 issuance, like the UBS transactions, is tied to commercial real estate assets, which remain vulnerable to shifting demand and valuation pressures.

Fitch's actions align with its ongoing reassessments of CMBS securities, particularly those backed by properties in sectors such as office, retail, and industrial, which have experienced uneven recovery post-pandemic. The agency has taken similar steps across multiple 2018-vintage transactions, reflecting a broader trend of caution in the structured finance market.

Investors are advised to monitor these developments closely, as negative outlooks may precede further rating adjustments. Fitch has not indicated whether additional actions are planned for these or related transactions.

According to Fitch Ratings: Fitch Ratings, March 27, 2025
As reported by Fitch Ratings: Fitch Ratings, January 25, 2021
According to Fitch Ratings: Fitch Ratings, December 2023 CMBS market analysis

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