DBRS Confirms All Classes of WFCM 2015-C27

DBRS Limited (DBRS) confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-C27 (the Certificates) issued by Wells Fargo Commercial Mortgage Trust 2015-C27:

-- 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-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class PEX at A (low) (sf)
-- Class X-B 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 actions reflect the overall stable performance of the transaction since issuance, when the collateral consisted of 95 loans secured by 124 commercial and multifamily properties. According to the January 2018 remittance, 89 loans remain in the pool with an aggregate balance of $1.0 billion, representing a collateral reduction of 4.4% since issuance due to an unscheduled loan repayment and scheduled loan amortization. One loan, Central Self Storage – Harvey, (Prospectus ID #91, 0.2% of the pool) has been fully defeased.

To date, approximately 93.2% of the pool has reported YE2016 financials. Based on the most recent year-end financials available, the pool had a weighted-average (WA) debt service coverage ratio (DSCR) of 1.80 times (x) and a WA debt yield of 10.8%, compared to the WA DBRS Term DSCR and WA DBRS Debt Yield derived at issuance of 1.51x and 8.7%, respectively. Based on the same financials, the Top 15 loans (48.6% of the pool), reported a WA DSCR of 1.84x, compared to the DBRS Term DSCR derived at issuance of 1.50x, reflecting a WA net cash flow growth of 27.0% since issuance for those loans.

According to the January 2018 remittance, there is one loan in special servicing and ten loans on the servicer’s watchlist, representing 0.3% and 13.5% of the pool, respectively. The Peoria Multifamily Portfolio loan (Prospectus ID #78) was transferred to special servicing in February 2017, and according to the servicer, the collateral is expected to be foreclosed. Of the ten loans on the servicer’s watchlist, six loans (10.9% of the pool) were flagged for major casualty and life safety issues and four loans (2.6% of the pool) were flagged for delinquency and/or declining cash flow performance.

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.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

Prospectus ID #1 – Westfield Palm Desert
Prospectus ID #2 – WP Carey Self Storage Portfolio
Prospectus ID #3 – 312 Elm
Prospectus ID #22 – Plaza Mayor Shopping Center
Prospectus ID #53 – Country Club Apartments
Prospectus ID #78 – Peoria Multifamily Portfolio

For complimentary access to this content, please register for the DBRS Viewpoint platform at viewpoint.dbrs.com. The platform includes Issuer and Servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS-rated transactions.

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

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.