KBRA Downgrades One Rating of JPMBB 2015-C32 to D (sf) Following Realization of Principal Losses
23 Jun 2025 | New York
KBRA downgrades the rating of the Class F certificates to D (sf) from C (sf) DN for JPMBB 2015-C32, a $652.1 million CMBS conduit transaction, following realized losses incurred on the class. Simultaneously, the aforementioned class has been removed from Watch Downgrade (DN), where it was placed on May 27, 2025. As of the June 2025 remittance distribution, Class F has taken $3.8 million of realized losses (33.2% of the original certificate balance), as a result of reimbursement of non-recoverable advances.
There are $49.7 million of cumulative principal losses on the transaction, resulting in both non-rated classes below Class F being reduced to zero from a combination of realized losses from liquidation of assets as well as recovery of advances. Of the cumulative loss to date, reimbursement of non-recoverable advance from principal total $36.0 million. Currently, $3.0 million of non-recoverable advances remain outstanding.
The advance reimbursements are attributable to six specially serviced assets that have been deemed non-recoverable: Civic Opera Building (largest, 10.1%, 90+ days delinquent), Hilton Suites Chicago Magnificent Mile (2nd largest, 9.9%, REO), Palmer House Retail Shops (3rd largest, 8.8%, REO), Gateway Business Park (4th largest, 7.1%, 90+ days delinquent), Hilton Atlanta Perimeter (8th largest, 3.8%, REO), and Market Square at Montrose (0.7%, REO). Along with the non-recoverable advances, the transaction has incurred $13.7 million of losses from the liquidation of three previously specially serviced assets: Hyatt Place Texas Portfolio (November 2020 liquidation), Town & Country Shopping Center (July 2022), and La Quinta Inn & Suites - Angleton, TX (April 2023).
KBRA's other outstanding transaction ratings and watch downgrade placements are unchanged at this time. The applied loss this month is in line with KBRA's estimated losses from KBRA's most recent surveillance review in October 2024.
Rating Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the likelihood of ultimate payment of principal and accrued interest on the rated securities. 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.
For additional details, please see the JPMBB 2015-C32 October 2024 Surveillance Report and the May 2025 Watch Downgrade Press Release linked below.
To access ratings and relevant documents, click here.