DBRS Confirms Ratings on FREMF 2015-K51 Mortgage Trust, Series 2015-K51

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of Multifamily Mortgage Pass-Through Certificates, Series 2015-K51 issued by FREMF 2015-K51 Mortgage Trust, Series 2015-K51:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class B at A (low) (sf)
-- Class C at BBB (sf)
-- Class X1 at AAA (sf)
-- Class X2-A at AAA (sf)
-- Class X2-B at AAA (sf)

All trends are Stable.

The rating confirmations reflect the overall performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The collateral consists of 99 fixed-rate loans secured by 99 multifamily properties, and as of the November 2016 remittance, there has been a collateral reduction of 0.3% since issuance. Loans representing 75.1% of the current pool balance are reporting YE2015 figures with a weighted-average (WA) debt service coverage ratio (DSCR) and a WA debt yield of 1.34 times (x) and 7.0%, respectively. The DBRS underwritten WA DSCR and WA debt yield at issuance were 1.43x and 8.0%, respectively. The largest 15 loans in the pool collectively represent 36.1% of the transaction balance and ten of those loans are reporting YE2015 financials, showing a WA net cash flow growth of 8.8% over the DBRS underwritten figures, with a WA DSCR and debt yield of 1.98x and 9.5%, respectively.

There were six loans on the servicer’s watchlist, representing 6.4% of the current pool balance, as of the November 2016 remittance. One of the watchlisted loans is in the top 15, Prospectus ID#15, The Belvedere at Westchase Apartments, which represents 1.7% of the current pool balance. Most of the watchlisted loans are being monitored for deferred maintenance or a recent hazard loss that requires servicer administration of insurance proceeds, with most loans reporting a healthy DSCR and occupancy figure as of the most recent reporting period.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans, as well as for the largest 15 loans in the pool, in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 2016), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.