DBRS Confirms All Classes of Morgan Stanley Capital I Trust 2015-MS1

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-MS1 issued by Morgan Stanley Capital I Trust 2015-MS1:

-- 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-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class PST at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (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 since issuance in May 2015. The transaction consists of 54 fixed-rate loans secured by 59 commercial properties. The pool has experienced a collateral reduction of 1.1% since issuance as a result of scheduled amortization, with all of the original 54 loans outstanding. Approximately 82.0% of the pool reported YE2016 financials, including a weighted-average (WA) debt service coverage ratio (DSCR) of 1.66 times (x) and a WA debt yield of 8.6%. Comparatively, the YE2015 WA DSCR and WA debt yield were 1.82x and 8.7%, respectively.

As of the May 2017 remittance, there were three loans, representing 16.9% of the pool balance, on the servicer’s watchlist and no loans in special servicing. The largest loan on the servicer’s watchlist is secured by the leased fee interest in the 2.1-acre land parcel under 300 South Riverside Plaza (Prospectus ID#2, 7.7% of the current pool balance), a 1.1 million square foot office building located in Chicago’s West Loop. The loan was flagged because of the largest tenant’s vacating the building. The three loans reported a WA DSCR of 1.25x.

At issuance, DBRS shadow-rated three loans investment grade. DBRS confirms with this review that the performance of these loans, which include Prospectus ID#3 32 Old Slip Fee (6.9% of the current pool balance), Prospectus ID#6 841-853 Broadway (5.7% of the current pool balance) and Prospectus ID#5 Alderwood Mall (5.4% of the current pool balance), 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 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.