KBRA Downgrades Three Ratings and Affirms All Other Ratings for MSCI 2015-MS1
9 Aug 2024 | New York
KBRA downgrades the ratings of three classes of certificates and affirms all other ratings of MSCI 2015-MS1, a $780.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses primarily from two K-LOCs (8.8% of the pool balance).
As of the July 2024 remittance period, there is one specially serviced asset (1.9% of the pool balance), which is REO. KBRA identified seven K-LOCs (16.9%), including the specially serviced asset. Of the K-LOCs, two (8.8%) have estimated losses. The K-LOCs include:
Two of the top 10 loans (10.9%):
- Waterfront at Port Chester (4th largest, 6.9% of the pool balance, 51.9% estimated loss severity)
- Premier Apartments (9th largest, 4.0%)
One other K-LOC has an estimated loss:
- HSBC - Brandon, FL (1.9%, 67.8%)
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 100.3%, compared to 103.4% at last review and 97.5% at securitization. The KDSC is 2.06x, compared to 2.10x at last review and 2.19x at securitization.
Details concerning the classes with rating changes are as follows:
- Class D to BB (sf) from BBB- (sf)
- Class E to B (sf) from BB- (sf)
- Class F to CCC (sf) from B- (sf)
To access rating and relevant documents, click here.
Click here to view the report.
Related Publication
Methodologies
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology