DBRS Confirms All Classes of COMM 2015-LC21 Mortgage Trust

DBRS Limited (DBRS) has today confirmed all classes of Commercial Pass-Through Certificates, Series 2015-LC21 issued by COMM 2015-LC21 Mortgage Trust as follows:

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

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

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The collateral consists of 103 loans secured by 198 commercial properties; as of the April 2017 remittance, the pool has experienced collateral reduction of 1.3% because of scheduled amortization, with all of the original loans remaining in the pool. Thirteen loans, representing 24.9% of the pool balance, including six loans in the Top 15, were structured with full interest-only (IO) terms at issuance, while an additional 40 loans, representing 36.9% of the pool balance, were structured with partial IO periods. As of the April 2017 remittance, 26 loans, representing 26.8% of the pool balance, have remaining partial-IO terms ranging from one to 37 months. Based on the most recent year-end (YE) reporting for the underlying loans, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA Debt Yield of 2.10 times (x) and 10.7%, respectively. At issuance, the pool reported a WA DSCR and WA debt yield of 1.70x and 10.4%, respectively, with a WA DBRS Term DSCR and WA DBRS Debt Yield of 1.58x and 8.6%, respectively.

As of the April 2017 remittance, there are no loans in special servicing and seven loans, representing 4.2% of the pool balance, on the servicer’s watchlist. One loan (Prospectus ID#35 - Shoppes of Beavercreek, 1.1% of the pool balance) was watchlisted because of its retail tenant bankruptcy exposure and was analyzed with a stressed cash flow to reflect the increased risk. Two loans (1.5% of the pool balance) were watchlisted because of structural triggers but are performing in line with DBRS’s expectations at issuance. The four remaining loans are being monitored for a low DSCR.

At issuance, DBRS shadow-rated the largest loan, Courtyard by Marriott Portfolio (Prospectus ID#1, 7.4% of the pool balance) investment grade. DBRS has today confirmed that the performance of these loans remains consistent with investment-grade loan characteristics.

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 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.