DBRS Confirms All Classes of Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20

DBRS Limited (DBRS) confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-C20 (the Certificates) issued by Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20:

-- 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 (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class PST at A (low) (sf)
-- Class X-D at BBB (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 rating confirmations reflect the overall stable performance of the transaction since issuance, when the pool consisted of 88 fixed-rate loans secured by 102 commercial and multifamily properties. As of the December 2017 remittance, all loans remained in the pool, with an aggregate principal balance of approximately $1.12 billion, representing a collateral reduction of 2.3% since issuance as a result of scheduled amortization. There are currently 15 loans (26.3% of the pool) with remaining partial interest-only (IO) periods, ranging from one to 24 months, while eight loans (9.1% of the pool) were structured with full IO terms. One loan (0.9% of the pool) is secured by collateral that has been fully defeased. To date, 61 loans (69.3% of the pool) reported partial-year 2017 financials, while 86 loans (97.7% of the pool) reported YE2016 financials. Based on the most recent year-end financial reporting, the transaction had a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.63 times (x) and 10.0%, respectively, compared with the DBRS WA Term DSCR and WA DBRS Debt Yield derived at issuance of 1.47x and 8.9%, respectively.

The pool is concentrated by property type, as 11 loans, representing 38.1% of the pool, are secured by office properties, while 14 loans (15.9% of the pool) are secured by multifamily properties and 18 loans (20.5% of the pool) are secured by hotel properties. By loan size, the pool is relatively diverse, as the largest 15 loans represent 49.1% of the pool, a lower concentration as compared with transactions of similar vintage to the subject. Based on the most recent cash flows available, the top 15 loans reported a WA DSCR of 1.72x, compared with the WA DBRS Term DSCR of 1.40x, which is reflective of a 21.1% net cash flow growth over the DBRS issuance figures.

As of the December 2017 remittance, there is one loan (0.6% of the pool) in special servicing and one loan (0.6% of the pool) on the servicer’s watchlist. The loan in special servicing, Holiday Inn Express – Syracuse (Prospectus ID#53), transferred to special servicing in September 2017 because of payment default. Based on the October 2017 appraisal, property value has dropped by approximately 56.4% since issuance. The loan on the servicer’s watchlist, Dover Pointe (Prospectus ID#59), was flagged because of property damage sustained during Hurricane Harvey. For further information on these loans, please see the DBRS Loan Commentary on the DBRS Viewpoint platform, for which registration information is provided below.

Classes X-A, X-B, X-D, X-E and X-F 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 and specially serviced loans in the transaction, as well as the Top 15 loans, in the DBRS Viewpoint platform. Registration and access to content 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 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.

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 under Related Documents or by contacting us at info@dbrs.com.

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

This rating was not initiated at the request of the rated entity.

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

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