KBRA Withdraws One Rating and Affirms All Other Ratings for RR 2015-1
23 May 2025 | New York
KBRA withdraws one rating and affirms all other outstanding ratings for RR 2015-1, a re-securitization of the FREMF 2015-K46 securitization’s (the underlying trust) Class D certificates. FREMF 2015-K46 was issued in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The affirmations follow a surveillance review of the underlying trust, which has exhibited an improvement in pool performance and significant deleveraging from loan payoffs since KBRA's last ratings change in August 2022. However, the magnitude of the changes does not warrant ratings adjustments at this time. The review was conducted using data from the April 2025 remittance report for the underlying trust, borrower financial statements, rent rolls, and market information provided from REIS. The rating withdrawal on Class A follows the reduction of its principal balance to zero according to the April 2025 remittance report.
In the FREMF 2015-K46 underlying trust, as of the April 2025 remittance period, there are six loans remaining totaling $82.6 million, of which two (26.5% of the pool balance) are specially serviced and failed to pay off at their scheduled March and April 2025 maturities. One additional loan (10.5%) failed to pay off in April 2025, however it has received a 30 day extension from the master servicer and is expected to pay off in May 2025. The remaining three loans (63.1%) are expected to mature between May and June 2025. The WA KLTV is 84.5%, compared to 93.6% at KBRA's last ratings change and 118.6% at re-securitization. The KDSC is 2.58x, compared to 2.01x at KBRA's last ratings change and 1.52x at re-securitization. Based on the most recent servicer-reported NCF and a refinance of the current balance with an assumed IO loan at a rate of 6%, there is one loan (13.4%) that would have a DSC of less than 1.20x.
KBRA identified all three past due loans (36.9%) as K-LOCs, none of which have an estimated loss. These include:
- 316 East 3rd Street (3rd largest, 13.4%)
- The Plaza Tower Cooperative (4th largest, 13.1%)
- Chestnut Hill South (5th largest, 10.5%)
Rating Sensitivities
Future ratings actions will be dependent upon the ability of the remaining loans to pay off as the loans in the transaction are approaching their maturity in the near term. However, rating changes can occur for a variety of reasons that are not dependent upon maturity defaults and subsequent losses. For example, unforeseen trust expenses that cause recurring interest shortfalls to the securities could prompt negative rating changes.
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