KBRA Downgrades 10 Ratings and Affirms All Other Ratings for COMM 2015-DC1
3 Jan 2025 | New York
KBRA downgrades the ratings of 10 classes of certificates and affirms all other outstanding ratings of COMM 2015-DC1, a $679.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses from 11 K-LOCs (46.6% of the pool balance), six of which are within the top 10 (37.6%). The rating actions also considers the deleveraging of the transaction from loan pay-offs, amortization, and defeasance, as well as, the risk of interest shortfalls raising further up the capital structure as the special servicer works to resolve the loans that are unable to pay off at their upcoming maturity.
As of the December 2024 remittance period, there are 11 specially serviced assets (48.2%), of which two (9.4%) are REO, three are in foreclosure (8.8%) and one (11.3%) is 90+ days delinquent. KBRA identified 14 K-LOCs (52.9%), including the specially serviced assets. These include:
Seven of the top 10 assets (41.9%):
- SoHo Portfolio (2nd largest, 11.3% of the pool balance, 46.6% estimated loss severity)
- Keystone Summit Corporate Park (3rd largest, 10.0%, 20.6%)
- 115 Mercer (5th largest, 5.4%, 59.1%)
- 760 & 800 Westchester Avenue (6th largest, 4.3%)
- Legacy at Lake Park (7th largest, 3.9%, 27.3%)
- 200 West Second Street (8th largest, 3.8%, 86.6%)
- Campus at Greenhill (10th largest, 3.2%, 50.2%)
Five other K-LOCs have estimated losses (9.0%):
- Tintri Mountain View (3.0%, 19.1%)
- TPI Hospitality Pool C (2.6%, 17.8%)
- 1045 Bryant Street (1.8%, 55.7%)
- Holiday Inn Express Baytown (1.1%, 3.2%)
- The Annex of Vincennes (0.6%, 35.6%)
The remaining two K-LOCs represent 6.4% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 91.9% and the KDSC is 1.37x.
Details concerning the classes with ratings changes are as follows:
- Class B to A (sf) from AA- (sf)
- Class C to BBB- (sf) from A- (sf)
- Class PEZ to BBB- (sf) from A- (sf)
- Class D to CCC (sf) from BB (sf)
- Class E to CC (sf) from B- (sf)
- Class F to C (sf) from CCC (sf)
- Class G to C (sf) from CC (sf)
- Class X-C to CCC (sf) from BB (sf)
- Class X-D to CC (sf) from B- (sf)
- Class X-E to C (sf) from CC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.