KBRA Downgrades Seven Ratings and Affirms All Other Ratings for WFCM 2015-NXS4

KBRA downgrades the ratings of seven classes and affirms all other outstanding ratings for WFCM 2015-NXS4, a $560.9 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on six of the K-LOCs in the transaction (15.5% of the pool balance). The ratings also consider the deleveraging of the transaction from loan payoffs, amortization, and defeasance.

As of the July 2024 remittance period, there are five specially serviced assets (13.1%), of which, two are REO (3.3%) and one (1.4%) is 90+ days delinquent. KBRA identified nine K-LOCs (18.8%), including the specially serviced assets. These include:

Four of the top 10 loans (13.1%):

Two other K-LOCs (2.5%) have estimated losses:

The remaining three K-LOCs do not have estimated losses and represent 3.2% of the pool.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 87.6%, compared to 96.3% at last review and 103.7% at issuance. The KDSC is 1.68x, compared to 1.58x at last review and 1.67x at issuance.

Details concerning the classes with rating changes are as follows:

Class D to BB (sf) from BBB (sf)

Class E to B (sf) from BBB- (sf)

Class F to CC (sf) from B- (sf)

Class G to C (sf) from CCC (sf)

Class X-D to B (sf) from BBB- (sf)

Class X-F to CC (sf) from B- (sf)

Class X-G to C (sf) from CCC (sf)

To access rating and relevant documents, click here.

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