KBRA Downgrades One Rating for WFCM 2015-C26 to D (sf) Following Realization of Principal Losses

KBRA downgrades the rating of the Class D certificates to D (sf) from C (sf) for WFCM 2015-C26, a $2.6 million CMBS conduit transaction, following realized losses incurred from the discounted payoffs of two specially serviced loans, as reflected in the January 2026 remittance report. The two loans, University Circle – 118 Flats Square and University Circle – 118 Flats Circle, were resolved with aggregate realized losses of $799,723. Realized losses were allocated to the Class E certificates, which were reduced to zero, and to the Class D certificates.

Cumulative principal write-downs for the securitization to date totaled $73.5 million and were primarily caused by holdbacks related to ongoing litigation involving the Aloft Houston by the Galleria loan, which exited the pool in February 2024 after its originator repurchased the loan as required by a July 2023 judgment in favor of the Trust. The reduction of principal and notional balances for certain classes may be temporary, considering a release of the holdback could reverse some of the realized losses and interest shortfalls.

Following the dispositions, only one specially serviced loan remains in the mortgage pool, which is a $2.6 million mortgage secured by Walgreens – Columbus, a 14,490 sf freestanding retail building. The property is leased to Walgreens through October 2078; however, the tenant has a lease termination in October 2028 and has already vacated.

KBRA's other outstanding ratings for the transaction are unchanged at this time.

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as the magnitude and extent of interest shortfalls, if any, on the certificates.

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