Press Release|CMBS

KBRA Upgrades Three Ratings and Affirms All Other Ratings for WFCM 2015-NXS3

13 Sep 2024   |   New York

Contacts

KBRA upgrades the ratings of three classes of certificates, B, C, and PEX, and affirms all other outstanding ratings of WFCM 2015-NXS3, a $511.4 million conduit transaction. The rating actions follow a review of the transaction and reflect the deleveraging of the transaction from loan payoffs, amortization, and defeasances, as well as the positive maturity profiles of a majority of the remaining loans, all of which mature between June 2025 and October 2025.

As of the August 2024 remittance period, there are two (4.0% of the pool) specially serviced loans, both of which are over 90 days delinquent. KBRA identified four loans (6.5%) as K-LOCs, including the specially serviced assets. The K-LOCs include one of the Top 10 loans:

  • 722 12th Street NW (10th largest, 2.9% of the pool balance, 69.3% loss severity)

One other K-LOC has an estimated loss:

  • Chagrin Plaza Beachwood (1.1%, 9.0%)

The remaining two K-LOCs, representing 2.6% of the pool balance, do not have estimated losses.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 87.2%, which is lower than 92.7% at last review and 100.2% at issuance. The KDSC is 2.27x, compared to 2.20x at last review and 2.00x at issuance.

Details concerning the ratings changes are as follows:

  • Class B to AA (sf) from AA- (sf)
  • Class C to A (sf) from A- (sf)
  • Class PEX to A (sf) from A- (sf)

To access rating and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1005898

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