DBRS Confirms All Classes of MSBAM 2015-C20

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-C20 (the Certificates) issued by Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class X-D at AAA (sf)
-- Class X-E at AAA (sf)
-- Class X-F at AAA (sf)
-- Class B at AA (low) (sf)
-- Class PST at A (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (low) (sf)

All trends are Stable. The Class PST certificates are exchangeable for the Classes A-S, B and C certificates (and vice versa).

These rating confirmations reflect the overall stable performance of the transaction. At issuance, the pool consisted of 88 loans secured by 102 commercial and multifamily properties. The pool has since experienced a collateral reduction of 1.4% as a result of scheduled amortization, with all of the original 88 loans outstanding. Based on YE2015 financials, with 100% of the pool reporting, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) of 1.53 times (x) and a WA debt yield of 9.4%. Comparatively, the YE2014 WA DSCR and WA debt yield were 1.40x and 8.3%, respectively. At issuance, the WA DBRS UW DSCR and debt yield figures were 1.47x and 8.9%, respectively.

As of the December 2016 remittance, there are two loans, representing 3.2% of the current pool balance, on the servicer’s watchlist. Both of these loans were placed on the watchlist for weather-related issues resulting in a temporary closure of the respected properties. Insurance proceeds have been received for both, with both open or scheduled to reopen within a month. For additional information on these loans, please see the servicer’s reported data and DBRS commentary on the DBRS IReports platform at www.ireports.dbrs.com.

DBRS has also provided updated loan-level commentary and analysis 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 of this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

The ratings assigned to Classes E and F materially deviate from the higher ratings implied by the quantitative model. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative model that is a substantial component of a rating methodology; in this case, the assigned ratings reflect the sustainability of loan performance trends not demonstrated.

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 (January 2017) 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.