DBRS Confirms All Classes of Wells Fargo Commercial Mortgage Trust 2015-LC20

DBRS Limited (DBRS) has today confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-LC20 issued by Wells Fargo Commercial Mortgage Trust 2015-LC20 as follows:

-- 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 B at AA (low) (sf)
-- Class X-B at A (sf)
-- Class C at A (low) (sf)
-- Class PEX at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class X-E at BB (sf)
-- Class E at BB (low) (sf)
-- Class X-F at B (sf)
-- Class F at B (low) (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 68 fixed-rate loans secured by 122 commercial properties, and as of the February 2017 remittance, there has been a collateral reduction of 1.0% since issuance. Loans representing 92.2% of the current pool balance are reporting YE2015 figures, and loans representing 27.3% of the current pool balance are reporting YE2016 financials. According to the YE2015 financials, the pool reported a weighted average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.65 times (x) and 9.5%, respectively. The DBRS WA DSCR and WA debt yield at issuance were 1.46x and 8.2%, respectively. The largest 15 loans in the pool represent 56.1% of the transaction balance, and all loans but two reported YE2015 financials, which showed a slight WA net cash flow decline of 12.1% over the DBRS figures, with a WA DSCR and WA debt yield of 1.68x and 8.9%, respectively.

As of the February 2017 remittance, there are three loans on the servicer’s watchlist, representing 4.0% of the current pool balance, including one loan in the top 15.

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 in to 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 principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.

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