KBRA Downgrades Six Ratings and Affirms All Other Ratings for CSAIL 2015-C2
14 Mar 2025 | New York
KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings for CSAIL 2015-C2, a $703.5 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses for 11 K-LOCs (34.4% of the pool balance) since KBRA's last ratings change in March 2021.
As of the February 2025 remittance period, there are six specially serviced assets (9.7% of the pool balance), including two which are in foreclosure (3.2%). KBRA identified 24 K-LOCs (58.6%), including the specially serviced assets. Of the K-LOCs, eleven (34.4%) have estimated losses. The K-LOCs include nine top 10 assets (41.7%), of which five (26.9%) have estimated losses:
- Westfield Wheaton (largest, 13.5% of the pool balance, 27.6% estimated loss severity)
- Residence Inn Beverly Hills (2nd largest, 5.6%)
- Westfield Trumbull (3rd largest, 4.8%, 49.2%)
- Sterling & Milagro Apartments (4th largest, 3.5%)
- Little Tokyo Galleria (5th largest, 3.1%)
- California Corporate Center (6th largest, 3.0%, 63.6%)
- Bayshore Mall (8th largest, 2.8%, 39.7%)
- St. Louis Premium Outlets (9th largest, 2.8%, 1.4%)
- 1200 Corporate Place (10th largest, 2.6%)
Of the remaining sixteen K-LOCs (16.9%), six loans representing 7.4% have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 102.2%, compared to 111.0% at KBRA's last ratings change and 104.7% at issuance. The WA KDSC is 1.50x, compared to 1.53x at KBRA's last ratings change and 1.71x at issuance.
Details concerning the classes with rating changes are as follows:
- Class C to BBB (sf) from A- (sf)
- Class D to B- (sf) from BBB- (sf)
- Class E to CC (sf) from B- (sf)
- Class F to C (sf) from CCC (sf)
- Class X-E to CC (sf) from B- (sf)
- Class X-F to C (sf) from CCC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.