DBRS Confirms Ratings of Wells Fargo Commercial Mortgage Trust 2015-NXS2

DBRS Limited (DBRS) has today confirmed all classes of Commercial Pass-Through Certificates, Series 2015-NXS2 (the Certificates) issued by WFCM 2015-NXS2 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-SB 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 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 Class A-S, Class B and Class C Certificates may be exchanged for the Class PEX Certificates (and vice versa).

The rating confirmations reflect the overall stable performance of the transaction since issuance. The transaction consists of 63 fixed-rate loans secured by 77 commercial and multifamily properties. According to the June 2017 remittance, the pool has experienced a collateral reduction of 1.0% since issuance as a result of scheduled loan amortization, with all loans remaining in the pool. The transaction has an aggregate outstanding principal balance of $904.9 million. There are 54 loans, representing 89.3% of the current pool balance, that are reporting YE2016 financials. These loans exhibited a WA debt service coverage ratio (DSCR) and debt yield of 1.80 times (x) and 9.4%, respectively, compared with 1.70x and 8.9% at issuance. The top 15 loans reported a WA DSCR and debt yield of 1.71x and 8.3%, respectively. The pool has a healthy concentration of 14 properties, representing 28.1% of the pool balance, located in urban markets, while loans secured by properties located in tertiary and rural markets represent only 5.9% of the pool balance, none of which are in the top 15.

As of the June 2017 remittance, there are no loans in special servicing and three loans, representing 1.7% of the pool balance, are on the servicer’s watchlist.

At issuance, DBRS shadow-rated the Patriots Park loan (Prospectus ID#1) representing 9.9% of the current pool balance, as investment-grade. DBRS has today confirmed that the performance of this loan remains consistent with investment-grade characteristics.

DBRS has provided updated loan-level commentary and analysis for the 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 Multi-borrower Rating Methodology (March 2017) and CMBS North American Surveillance (March 2017), which can be found on www.dbrs.com under Methodologies.