DBRS Confirms 18 Classes of COMM 2015-CCRE23 Mortgage Trust

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-CCRE23 issued by COMM 2015-CCRE23 Mortgage Trust:

-- 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-M at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class CM-A at AAA (sf)
-- Class CM-X-CP at AAA (sf)
-- Class CM-X-EXT at AAA (sf)
-- Class X-B at A (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class X-C at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class X-D at BB (sf)
-- Class E at BB (low) (sf)
-- Class F at B (low) (sf)

Additionally, DBRS has upgraded one class of COMM 2015-CCRE23 Mortgage Trust as follows:

-- Class CM-B to A (sf) from A (low) (sf)

All trends are Stable. DBRS does not rate the first loss piece, Class G.

These rating actions reflect the overall stable performance of the transaction since issuance in May 2015. The transaction consists of 83 fixed-rate loans secured by 220 commercial properties. The pool has experienced a collateral reduction of 1.2% since issuance as a result of scheduled amortization, with all of the original 83 loans outstanding. Approximately 99.5% of the pool reported YE2015 financials, including a weighted-average (WA) debt service coverage ratio (DSCR) of 1.79 times (x) and a WA debt yield of 9.4%. The DBRS issuance WA DSCR and WA debt yield were 1.92x and 9.5%, respectively.

As of the April 2017 remittance, there were two loans, representing 2.9% of the pool balance, on the servicer’s watchlist and no loans in special servicing. One loan was flagged for performance dropping below the DSCR threshold of 1.20x as at Q2 2016 reporting but has since improved to 1.21x as at the YE2016 financials. The other loan was watchlisted for failing a covenant-compliance stressed DSCR test, and as such, a lockbox has been activated and the loan is being monitored. The two loans reported a WA DSCR of 1.24x and WA debt yield of 8.4%.

The Courtyard by Marriott Portfolio loan (Prospectus ID#2; 7.4% of the current pool) is secured by a portfolio of 65 Courtyard by Marriott hotels, totalling 9,590 keys. The collateral includes the fee and leasehold interest in 49 hotels, the fee interest in nine hotels and the leasehold interest in seven hotels. The subject loan consists of the $33.5 million A-1 piece and $100.0 million A-2A piece of the whole Senior A-note debt of $315.0 million, as well as the controlling subordinate B-note debt of $355.0 million. The A-1 piece and B-note debt are included in the trust as non-pooled rake bonds, while the A-2A piece is pooled in the trust. At issuance, DBRS shadow-rated this loan as investment grade. DBRS confirms with this review that the performance of this loan remains consistent with investment-grade loan characteristics.

Class CM-B is a non-pooled rake bond backed by the $355.0 million Courtyard by Marriott Portfolio B-note. This class was upgraded with this review in accordance with the changes in the “North American Single-Asset/Single-Borrower Methodology” published in March 2017. Please refer to the press release entitled “DBRS Closes Comment Process on North American CMBS/Real Estate Methodologies,” dated March 16, 2017, on www.dbrs.com for more information.

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 commercial mortgage-backed securities (CMBS) IReports platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or 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 www.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.