Press Release|CMBS

KBRA Downgrades One Rating, Affirms One Rating, Removes Eight Ratings from Watch Downgrade, and Withdraws Six Ratings for MSBAM 2015-C27

17 Apr 2026 | New York

KBRA downgrades one rating, affirms one rating, and withdraws six ratings for MSBAM 2015-C27. Simultaneously, KBRA removes all eight ratings from Watch Downgrade (DN), where they were placed on December 12, 2025. The CMBS transaction has been reduced to two loans and one REO asset, with a balance of $42.3 million, from 55 loans and $822.3 million at securitization. Since KBRA's watch placement in December 2025, three loans (20.2% of the issuance balance) have paid off in full.

The rating actions are based on, among other factors, KBRA’s identification of the three remaining assets as KBRA Loans of Concern (K-LOCs); our estimated total principal losses of $21.0 million and related recoveries; the current interest shortfalls of $2.3 million which impact Class G and below, and the possibility of shortfalls to rise higher in the capital structure in a sustained manner while the servicer resolves the transaction’s specially serviced assets.

KBRA also withdraws the ratings of three classes of certificates following the reduction of the principal balances of the rated securities to zero as reflected in the transaction's March 2026 remittance reports. Additionally, KBRA withdraws the ratings of two classes of interest-only certificates following the reduction of their respective principal balances to zero as reflected in the transaction's March 2026 remittance reports. Lastly, KBRA withdraws the rating of one interest-only certificates in accordance with KBRA's Methodology for Rating Interest-Only Certificates, as there are fewer than 10 loans remaining in the pool.

Of the three remaining specially serviced assets, one is REO (86.9%) and two (13.1%) are non-performing matured balloon. The REO asset has been deemed non-recoverable, resulting in interest shortfalls. Details of these assets are outlined below.

Granite 190 ($36.8 million, 86.9%, K-LOC, Specially Serviced, REO)

The asset is a 307,468-sf, Class-A office complex located in Richardson, Texas, approximately 18 miles north of the Dallas CBD. The development is comprised of two, three-story buildings that were constructed in 2001 and 2008.
The loan was transferred to special servicing due to imminent monetary default in March 2023 and a receiver was appointed in May 2023. The trust took title via a December 5, 2023 foreclosure sale and the receiver was dismissed in January 2024. The special servicer indicated a disposition of the asset will be considered in late 2026.
According to the September 2025 rent roll, the subject property was 47.1% leased, up from 37.0% last review but down from 91.7% at closing. The decline is the result of Volt Information Services, Inc. vacating at lease expiration in October 2023, as well as United HealthCare Services, Inc. (UHC) downsizing its footprint at lease expiration in June 2023 to 49,576 sf from 172,604 sf. Since last review, Galen Health (42.7% of total base rents, 23.3% of collateral sf) signed two new leases and expanded its space (18.4%, 10.1%).
The servicer reported an occupancy and DSC of 37.0% and -0.59x for the nine months ended September 2024. An appraisal dated November 2025 valued the asset as-is at $30.5 million ($99 per sf), and as-stabilized (December 2029) at $44.6 million ($145 per sf). As a result, the asset carries an ARA of $16.4 million and a cumulative ASER of $908,373. The loan was deemed non-recoverable by the trust in November 2025 and cumulative non-recoverable interest totals $738,588.
KBRA’s analysis resulted in an estimated loss of $20.4 million (55.6% estimated loss severity) on the loan balance of $36.8 million. The loss is based on a KBRA liquidation value of $18.3 million ($59 per sf) and projected total exposure of $38.7 million. The value is derived from a direct capitalization approach using a stabilized KNCF of $2.1 million, assuming an occupancy rate of 73.9% reflective of the Plano/Allen office submarket (REIS), and a capitalization rate of 9.25%. KBRA adjusted this value downward by $4.8 million to account for TI/LC costs and income lost during the stabilization period.

Walgreens - Shawnee, KS ($3.9 million, 9.1%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

The loan is collateralized by a 15,120-sf retail property located in Shawnee, Kansas. The property was built in 2001 and is 100% leased to Walgreens pursuant to a lease that expires in September 2070.
The loan failed to pay off at its scheduled maturity in September 2025 and transferred to the special servicer in the same month. A PNA has been executed and special servicer commentary indicates the borrower agreed to an extension modification, which was expected to close in January 2026. The special servicer has not provided an update on the modification at the time of this review. The loan is paid through January and its status switched from performing matured to nonperforming matured in February.
The servicer reported an occupancy and DSC of 100% 1.95x for the 12 months ended December 2024. An appraisal dated October 2025 valued the property at $3.7 million ($245 per sf), which is 47.9% lower than the $7.1 million ($470 per sf) appraised value at issuance and below the outstanding loan balance.
KBRA's analysis resulted in an estimated loss of $538,000 (13.9% estimated loss severity) on the loan balance of $3.9 million. The loss is based on a KBRA liquidation value of $3.7 million ($244 per sf) and projected total exposure of $4.2 million. The value is derived from a direct capitalization approach using KNCF of $323,000 and a capitalization rate of 8.75%.

Dollar General Portfolio ($1.7 million, 4.0%, K-LOC, Specially Serviced, Non-Performing Matured Balloon)

The loan is collateralized by a portfolio of four retail properties totaling 32,250 sf which were solely occupied by Dollar General at issuance. Three of the properties are located in Pennsylvania (80% of ALA, 75.2% of collateral sf) and one is located in Kentucky (20%, 24.8%). Dollar General vacated the Mt. Holly Springs property prior to lease expiration in June 2023 and the property has since become 100% leased to Green Life Thrift until October 2028. Dollar General vacated the Coxs Creek property at lease expiration in May 2019 and the property has since become 100% leased to Kaufman Ministries until December 2027.
The loan failed to pay off at its scheduled maturity in November 2025 and was transferred to the special servicer in the same month. The borrower signed a PNA in November and was expected to close on a refinance and pay off the loan in January 2026. The loan is still outstanding as of March and there were no updates on a potential refinance at the time of this review.
The servicer reported an occupancy and DSC of 100% and 1.23x for the six months ended June 2025. At this time, KBRA does not estimate a loss on this asset.

KBRA removes from Watch DN and affirms the following rating:

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

KBRA removes from Watch DN and downgrades the following rating:

Class G to CC (sf) from CCC (sf) DN

KBRA withdraws the following ratings:

Class C from A- (sf) DN to WR (sf)
Class D from BBB- (sf) DN to WR (sf)
Class E from BB (sf) DN to WR (sf)
Class X-D from BBB- (sf) DN to WR (sf)
Class X-E from BB (sf) DN to WR (sf)
Class X-F from B- (sf) DN to WR (sf)

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as, the magnitude and extent of interest shortfalls, if any, on the certificates.

To access ratings and relevant documents, click here.

KBRA Downgrades One Rating, Affirms One Rating, Removes Eight Ratings from Watch Downgrade, and Withdraws Six Ratings for MSBAM 2015-C27

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