KBRA Downgrades Five Ratings and Affirms All Other Ratings for BACM 2015-UBS7

KBRA downgrades five classes and affirms all other outstanding ratings for BACM 2015-UBS7, a $573.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction which has an increase in KBRA's estimated losses on two of the K-LOCs (11.8% of the pool balance). The rating action also considers the deleveraging of the pool from loan payoffs, amortization, and defeasance.

As of the June 2024 remittance, there is one specially serviced asset (3.1%) which is 30+ days delinquent. KBRA identified eight K-LOCs (30.2%), including the specially serviced asset, three of which (12.7%) have estimated losses. These include:

Four of the top 10 loans (26.7%):

261 Fifth Avenue (largest, 12.2% of the pool balance)
The Mall of New Hampshire (4th largest, 8.7%, 40.3% estimated loss severity)
Holiday Inn JFK (9th largest, 3.1%, 25.6%)
Antioch Crossings Shopping Center (10th largest, 2.7%)

One additional K-LOC has an estimated loss:

Aviare Place Apartments (0.9%, 5.2%)

The remaining three K-LOCs do not have estimated losses and represent 2.6% of the pool balance.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 84.3%, compared to 97.4% at KBRA's last ratings change and 97.8% at issuance. The KDSC is 1.88x, compared to 1.65x at KBRA's last ratings change and 1.75x at issuance.

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 CC (sf)
Class X-D to B (sf) from BB (sf)
Class X-E to CC (sf) from CCC (sf)

KBRA Downgrades Five Ratings and Affirms All Other Ratings for BACM 2015-UBS7

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