KBRA Downgrades Eight Ratings and Affirms All Other Ratings for JPMBB 2015-C27

KBRA downgrades the ratings of eight classes of certificates and affirms all other outstanding ratings of JPMBB 2015-C27, a $502.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses for the three largest assets in the pool, two of which are specially serviced (21.9% of the pool balance). The downgrades also reflect the likelihood of interest shortfalls continuing to impact the capital structure while the special servicer works to resolve the assets.

As of the October 2024 remittance period, there are three specially serviced assets (24.6%), two (21.9%) of which are in foreclosure and one that is 90+ days delinquent (2.6%). KBRA identified 13 K-LOCs (67.0%), including the specially serviced assets. These include:

Six of the top 10 loans (43.8%):

Two other loans (3.6%) have estimated losses:

The remaining five K-LOCs represent 19.6% of the pool balance and do not have estimated losses.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 89.0%, compared to 103.2% at last review and 106.4% at issuance. The KDSC is 1.36x, compared to 1.44x at last review, and 1.59x at issuance.

Details concerning the classes with rating changes are as follows:

To access ratings and relevant documents, click here.

Click here to view the report.

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