DBRS Confirms All Classes of Citigroup Commercial Mortgage Trust 2015-GC27

DBRS Limited (DBRS) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-GC27 issued by Citigroup Commercial Mortgage Trust 2015-GC27 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-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (sf)
-- Class X-B at A (sf)
-- Class C at A (low) (sf)
-- Class PEZ at A (low) (sf)
-- Class X-E at BB (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (sf)
-- Class X-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. The collateral consists of 100 fixed-rate loans secured by 116 commercial properties, and as of the January 2018 remittance, there has been a collateral reduction of 1.9% since issuance. Loans representing 97.1% of the current pool balance are reporting YE2016 figures with a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.74 times (x) and 9.9%, respectively. The DBRS WA Term DSCR and WA debt yield at issuance were 1.45x and 8.1%, respectively. The largest 15 loans in the pool collectively represent 50.5% of the transaction balance and reported YE2016 or trailing-12-month financials showing a WA net cash flow (NCF) growth of 21.9% over the DBRS issuance NCF figures, with a WA in-place DSCR and WA debt yield of 1.76x and 9.5%, respectively.

As of the January 2018 remittance, one loan, representing 0.5% of the current pool balance, is fully defeased. There are three loans on the servicer’s watchlist, representing 3.7% of the current pool balance; however, two of the loans, representing 1.1% of the pool, were flagged for minor issues in deferred maintenance. The largest watchlist loan, Prospectus ID#6 – Whitman Square, which represents 2.6% of the current pool balance, was placed on the watchlist because of the departure of a major collateral tenant, H. H. Gregg. There is one loan in special servicing, Prospectus ID #62 – GK Retail Portfolio, representing 0.5% of the current pool balance. The loan is with the special servicer after an unauthorized ownership transfer was completed. For additional information, please see the DBRS Loan Commentary for this loan in the DBRS Viewpoint platform.

Classes X-A, X-B, 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 the specially serviced loan in the transaction, in the DBRS Viewpoint platform. Registration and access 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 www.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.

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.