DBRS Confirms All Classes of WFCM 2015-C27

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-C27 (the Certificates) issued by Wells Fargo Commercial Mortgage Trust 2015-C27:

-- 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-5 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-E at AAA (sf)
-- Class X-F at AAA (sf)
-- Class X-G at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class PEX 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. DBRS does not rate the first loss piece, Class G. The Class PEX certificates are exchangeable for the Classes A-S, B and C certificates (and vice versa).

These rating actions reflect the overall stable performance of the transaction. At issuance, the pool consisted of 95 loans secured by 124 commercial and multifamily properties. The pool has since experienced a collateral reduction of 1.1% as a result of scheduled amortization, with all of the original 95 loans outstanding. Approximately 91.1% of the pool reported YE2015 financials, which reported a weighted-average (WA) debt service coverage ratio (DSCR) of 1.71 times (x) and a WA debt yield of 10.0%. Comparatively, the DBRS issuance WA DSCR and WA debt yield figures for the pool were 1.51x and 8.7%, respectively.

As of the February 2017 remittance, there were seven loans, representing 8.9% of the pool balance, on the servicer’s watchlist and one loan, representing 0.3% of the pool balance, in special servicing. The largest loan on the servicer’s watchlist, WP Carey Self Storage Portfolio VI (Prospectus ID#2, 4.6% of the pool), was placed on the watchlist following a fire that occurred at one of the nine self-storage properties which serve as collateral for the loan. Insurance proceeds have been received and construction was anticipated to be completed by January 2017. The other six loans on the watchlist are being monitored for various issues ranging from cash flow declines, deferred maintenance and tenant rollover, with a WA YE2015 DSCR of 1.38x.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted and specially serviced loan, 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.

The ratings assigned to Classes E and F materially deviate from the higher ratings implied by the quantitative results. 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 results 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.