DBRS Confirms All Classes of JPMBB Commercial Mortgage Securities Trust 2015-C32

DBRS Limited (DBRS) confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-C32 issued by JPMBB Commercial Mortgage Securities Trust 2015-C32:

-- 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 X-B at AA (sf)
-- Class B at AA (low) (sf)
-- Class X-C at A (sf)
-- Class C at A (low) (sf)
-- Class EC at A (low) (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (sf)
-- Class G 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. As of the September 2017 remittance, there has been a collateral reduction of 2.4% as a result of scheduled amortization. Loans representing 92.2% of the current pool balance show a YE2016 analysis in the servicer’s reporting. Those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.49 times (x) and 9.75%, respectively. The DBRS WA DSCR and WA debt yield for the pool at issuance were 1.37x and 8.8%, respectively. The YE2016 analysis for the largest 15 loans in the pool, representing 55.6% of the current pool balance, indicates WA net cash flow growth of 8.4% over the DBRS issuance figures, and WA DSCR and WA debt yield of 1.39x and 9.1%, respectively.

At issuance, DBRS shadow-rated the U-Haul Portfolio Loan (Prospectus ID#5, 3.7% of the current pool balance) as investment grade. DBRS has today confirmed that the performance of the loan remains consistent with investment-grade loan characteristics.

As of the September 2017 remittance, there were four loans on the servicer’s watchlist representing 14.4% of the current pool balance, including the largest loan and two other loans in the top 15. Prospectus ID#1, Hilton Suites Chicago Magnificent Mile (6.7% of the current pool balance), was flagged for a depressed DSCR as a result of ongoing renovations at the subject which were anticipated at issuance. The other three loans are being monitored for cash flow declines and DBRS applied a stressed cash flow to reflect the current performance of the subject properties. There are no loans in special servicing as of the September 2017 remittance.

Classes X-A, X-B, X-C, and X-D are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans in the transaction, as well as the Top 15 loans, in the DBRS Viewpoint 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 into DBRS Viewpoint at viewpoint.dbrs.com.

The ratings assigned to Class B materially deviates from the higher ratings implied by the quantitative results. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative results that is a substantial component of a rating methodology. The deviations are warranted given the sustainability of loan performance trends were not demonstrated.

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.

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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