KBRA Places the Ratings of Eight Classes of CSAIL 2015-C2 on Watch Downgrade (DN)
11 Jul 2025 | New York
KBRA places the ratings of eight classes of CSAIL 2015-C2, a CMBS conduit transaction, on Watch Downgrade (DN).
The Watch placements are based on an increase in interest shortfalls and, in some cases, in the concentration of specially serviced assets and K-LOCs. Currently, interest shortfalls are affecting up to and including the Class B certificates. KBRA considered the likelihood of interest shortfalls continuing and reaching higher in the capital structure during the resolution of the specially serviced assets.
As of the June 2025 remittance period, there are seventeen specially serviced assets (93.7% of the pool balance), of which four (18.4%) are in foreclosure and five (37.1%) are matured non-performing. KBRA identified seventeen assets as K-LOCs (92.0%), including the specially serviced assets, of which five (37.4%) have outstanding advances that have been deemed non-recoverable. Most recently, the Westfield Wheaton loan (largest, 26.0%) was deemed non-recoverable in April 2025 and is the primary cause of interest shortfalls reaching higher in the capital structure compared to previous months.
KBRA will continue to monitor the transaction and the underlying loans’ performance and will seek to resolve or update the Watch Downgrade status within 90 days.
Details concerning the classes with ratings placed on Watch are as follows:
- Class A-S to AAA (sf) DN from AAA (sf)
- Class B to AA- (sf) DN from AA (sf)
- Class C to BBB (sf) DN from BBB (sf)
- Class D to B- (sf) DN from B- (sf)
- Class E to CC (sf) DN from CC (sf)
- Class X-A to AAA (sf) DN from AAA (sf)
- Class X-B to AAA (sf) DN from AAA (sf)
- Class X-E to CC (sf) DN from CC (sf)
To access ratings and relevant documents, click here.