KBRA Downgrades Two Ratings and Affirms All Other Ratings for COMM 2015-LC21
2 May 2025 | New York
KBRA downgrades the ratings of two classes and affirms all other outstanding ratings for COMM 2015-LC21, a $612.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance KBRA's last ratings change in May 2022. The rating actions also reflect KBRA’s estimated losses for five K-LOCs (11.7% of the pool) and the resulting loss adjusted C/E levels.
As of the April 2025 remittance period, there are three specially serviced assets (12.3%), including one REO asset (2.6%). KBRA identified 13 K-LOCs (38.1%), including the specially serviced assets. These include four of the top 10 loans (23.8%):
- Courtyard by Marriott Pasadena (largest, 9.8% of the pool balance)
- Meridian at Brentwood (2nd largest, 5.9%)
- Santa Monica Clock Tower (5th largest, 4.4%, 42.0% estimated loss severity)
- Delaware Corporate Center I & II (7th largest, 3.7%, 36.1%)
Three other K-LOCs have estimated losses:
- Honeywell Building (2.6%, 74.0%)
- Westgate Shopping Center (0.6%, 39.1%)
- Jo Ann Fabrics El Paso (0.4%, 19.4%)
The remaining six K-LOCs do not have estimated losses and represent 10.7% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 111.1%, compared to 122.3% at KBRA's last ratings change and 103.6% at securitization. The WA KDSC is 1.36x, compared to 1.31x at KBRA's last ratings change and 1.96x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class E to CCC (sf) from B- (sf)
- Class F to CC (sf) from CCC (sf)
To access ratings and relevant documents, click here.
Click here to view the report.