KBRA Downgrades Six Ratings and Affirms All Other Ratings for CSAIL 2015-C3
12 Jul 2024 | New York
KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings for CSAIL 2015-C3, a $1.1 billion CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since last review. However, the transaction, particularly the top of the capital structure, has benefitted from deleveraging from loan payoffs, amortization, and defeasances. The rating actions also consider the likelihood that interest shortfalls could reach higher in the capital stack as K-LOCs reaching maturity in the near term are unable to pay off.
As of the June 2024 remittance period, there are two specially serviced assets (1.4% of the pool balance) that are 60+ days delinquent. KBRA identified 12 K-LOCs (35.8%), including the specially serviced assets. Of the K-LOCs, six (26.3%) have estimated losses. The K-LOCs include:
Six of the top 10 assets (28.9%):
- The Mall of New Hampshire (2nd largest, 9.2% of the pool balance, 40.3% estimated loss severity)
- Westfield Wheaton (3rd largest, 8.9%, 24.0%)
- Westfield Trumbull (6th largest, 3.8%, 62.0%)
- 21 Astor Place (8th largest, 2.5%, 29.6%)
- 16542 & 16550 Ventura (9th largest, 2.4%)
- Hendry Multifamily Portfolio (10th largest, 2.2%)
Two other K-LOCs (2.0%) have estimated losses:
- 4800 Sugar Grove (1.1%, 11.2%)
- Millside Plaza (0.9%, 13.3%)
The remaining four K-LOCs represent 4.9% of the pool balance.
Details concerning the classes with rating changes are as follows:
- Class D to B- (sf) from BB- (sf)
- Class E to CC (sf) from CCC (sf)
- Class F to C (sf) from CCC- (sf)
- Class X-D to B- (sf) from BB- (sf)
- Class X-E to CC (sf) from CCC (sf)
- Class X-F to C (sf) from CCC- (sf)
To access rating and relevant documents, click here.
Click here to view the report.