KBRA Downgrades Two Ratings of MSBAM 2015-C22 to D (sf) Following Realization of Principal Losses
10 Jul 2025 | New York
KBRA downgrades the ratings of the F and G certificates to D (sf) from CC (sf) and C(sf), respectively, for MSBAM 2015-C22, a $350.7 million CMBS conduit transaction, following realized losses incurred from the resolution of the Hilton Houston Westchase REO asset (originally 5th largest, $45.3 million loan balance at issuance) as reflected in the June 2025 remittance report. The asset was liquidated with a loss of $40.3 million (89.1% loss severity of original balance). After accounting for other adjustments related to prior non-recoverable advances (NRAs), the total loss allocated to the certificates totaled $37.2 million. The loss was generally in line with KBRA's expectations in the September 2024 Surveillance Report.
There are $57.5 million in cumulative principal losses on the transaction according to the June 2025 remittance report. Classes G and H have been reduced to zero and the realized losses have resulted in the principal balance of Class F being reduced by $3.0 million (21.4% of the original certificate balance). Along with the liquidation of the Hilton Houston Westchase REO asset, the transaction incurred losses from the liquidation sale of two previously specially serviced assets: Pathmark - Linden ($11.3 million loss, June 2018) and Sheraton Four Points College Station ($5.8 million, October 2020).
KBRA's other outstanding ratings are unchanged at this time.
Details concerning the classes with a rating change are as follows:
- Class F to D (sf) from CC (sf)
- Class G to D (sf) from C (sf)
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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