DBRS Confirms All Ratings of JPMBB Commercial Mortgage Securities Trust 2015-C33

DBRS Limited (DBRS) confirmed the Commercial Mortgage Pass-Through Certificates, Series 2015-C33 (the Certificates), issued by JPMBB 2015-C33 Commercial Mortgage Trust 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-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class B at AA (sf)
-- Class X-C at A (sf)
-- Class C at A (low) (sf)
-- Class D-1 at BBB (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class D-2 at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at BB (low) (sf)
-- Class G at B (low) (sf)

All trends are Stable. Classes D-1 and D-2 may be exchanged for the Class D certificates (and vice versa).

The rating confirmations reflect the overall stable performance exhibited by the transaction since issuance. As of the October 2017 remittance, all 64 loans remained in the pool with an aggregate principal balance of $752.6 million, representing a collateral reduction of 1.2% since issuance as the result of scheduled loan amortization.

At issuance, the weighted-average (WA) DBRS Term debt service coverage ratio (DSCR) and DBRS Debt Yield were 1.60 times (x) and 8.7%, respectively. Based on YE2016 financials for the underlying loans (98.3% reporting), the pool reported a WA DSCR and WA debt yield of 1.78x and 9.9%, respectively. The YE2016 figures are reflective of a WA net cash flow (NCF) growth of 12.8% over the DBRS NCF figures at issuance.

The largest fifteen loans in the pool, which represent 60.2% of the pool, reported a YE2016 WA DSCR and WA DY of 1.82x and 9.9%, respectively, experiencing a WA NCF growth of 10.4% over the DBRS issuance figures, ranging from -14.4% to 39.0%.

As of the October 2017 remittance, there were five loans, representing 6.0% of the pool, on the servicer’s watchlist. One loan, Prospectus ID#45 (0.5% of the pool) is being monitored for a DSCR below 1.0x as the property has experienced above-market vacancy issues, resulting in depressed cash flows. The loan reported a YE2016 DSCR of 0.79x, compared with the DBRS Term Issuance figure of 1.28x. Overall, the watchlisted loans are being monitored for non-performance issues, reporting a WA YE2016 DSCR and DY of 1.68x and 9.4%, respectively.

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 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.

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