KBRA Downgrades Six Ratings and Affirms All Other Ratings for WFCM 2015-C27
10 Jan 2025 | New York
KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings for WFCM 2015-C27, a $523.7 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses for six K-LOCs (29.1% of the total pool balance) since KBRA’s last ratings change in January 2022.
As of the December 2024 remittance period, there are six specially serviced assets (31.1%), of which two are in foreclosure (10.8%), one is 90+ days delinquent (4.4%) and one is matured non-performing (3.4%). KBRA identified 17 K-LOCs (49.0%), including the specially serviced assets. Of the K-LOCs, six (29.1%) have estimated losses. The K-LOCs include:
Five top 10 assets (32.3%):
- Westfield Palm Desert (largest, 11.9% of the pool balance, 46.0% estimated loss severity)
- 312 Elm (3rd largest, 7.7%, 49.9%)
- Albuquerque Plaza (5th largest, 4.9%)
- 300 East Lombard (7th largest, 4.4%, 74.7%)
- Residence Inn Charlotte Southpark (10th largest, 3.4%)
Three other K-LOCs have estimated losses:
- 312 Plum (3.1%, 63.2%)
- StoreQuest Self Storage (1.5%, 17.7%)
- Southland Plaza (0.5%, 59.7%)
The remaining nine K-LOCs do not have estimated losses and represent 11.6% of the pool.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 93.2%, compared to 104.0% at KBRA's last rating change and 104.1% at securitization. The KDSC is 1.47x, compared to 1.40x at KBRA's last rating change and 1.61x at securitization.
Details concerning the classes with rating changes are as follows:
- Class B to A (sf) from AA (sf)
- Class PEX to BBB- (sf) from A- (sf)
- Class C to BBB- (sf) from A- (sf)
- Class D to CC (sf) from B (sf)
- Class E to C (sf) from CC (sf)
- Class X-E to C (sf) from CC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.