KBRA Downgrades Five Ratings and Affirms All Other Ratings for CGCMT 2015-GC29
11 Mar 2025 | New York
KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings of CGCMT 2015-GC29, a $527.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses from four of the K-LOCs (46.3% of the pool balance) and the resulting loss adjusted C/E levels. The rating actions also consider the transaction deleveraging from loan payoffs, amortization and defeasance.
As of the February 2025 remittance period, there are four specially serviced loans (36.2%), of which one is in foreclosure (8.7%), one is non-performing matured (0.3%), and two are current (27.3%). KBRA has identified eight K-LOCs (48.7%), of which four (46.3%) have an estimated loss. These include:
Four of the top 10 loans (46.3%):
- Selig Office Portfolio (largest, 23.7% of the pool balance, 32.9% estimated loss severity)
- Parkchester Commercial (3rd largest, 10.4%, 28.6%)
- 170 Broadway (4th largest, 8.7%, 9.5%)
- 400 Plaza Drive (6th largest, 3.5%, 33.1%)
The remaining four K-LOCs do not have estimated losses and represent 2.4% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 103.0% compared to 112.6% at last review and 104.6% at securitization. The KDSC is 1.50x compared to 1.55x at last review and 1.74x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class D to B (sf) from BBB- (sf)
- Class E to CCC (sf) from BB (sf)
- Class F to CC (sf) from BB- (sf)
- Class G to C (sf) from B (sf)
- Class X-D to B (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.