KBRA Downgrades Two Ratings And Affirms All Other Ratings for MSBAM 2015-C26
4 Oct 2024 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings of MSBAM 2015-C26, an $865.3 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance KBRA's last ratings change in October 2020. The rating actions also reflect KBRA’s estimated losses for three K-LOCs (12.7%) and the resulting loss adjusted C/E levels.
As of the September 2024 remittance period, one loan (11.1%) is specially serviced. KBRA identified 10 K-LOCs (43.4%), including the specially serviced asset. These include six top 10 loans (39.0%):
- 535-545 Fifth Avenue (largest, 12.7% of the pool balance)
- Herald Center (2nd largest, 11.1%)
- Palmer Center (4th largest, 7.1%, 19.9% estimated loss severity)
- Skylight Office Tower (5th largest, 2.9%, 42.8%)
- Market Square Plaza (6th largest, 2.7%, 7.6%)
- Coastal Equities Retail Portfolio (7th largest ,2.5%)
The remaining four K-LOCs represent 4.5% of the pool balance and do not have estimated losses.
The transaction’s WA KLTV is 83.8%, compared to 93.1% at last review and 98.3% at securitization. The KDSC is 1.99x, compared to 1.92x at last review and 1.81x at securitization.
Details concerning the classes with rating changes are as follows:
- Class E to BB- (sf ) from BB (sf)
- Class F to B (sf) from BB- (sf)
To access rating and relevant documents, click here.
Click here to view the report.