DBRS Confirms All Classes of Morgan Stanley Bank of America Merrill Lynch Trust 2015-C21

DBRS Limited (DBRS) confirmed all classes of the Commercial Mortgage Pass-Through Certificates, Series 2015-C21 issued by Morgan Stanley Bank of America Merrill Lynch Trust 2015-C21 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 AAA (sf)
-- Class B at AA (high) (sf)
-- Class C at A (sf)
-- Class PST at A (sf)
-- Class D at BBB (low) (sf)
-- Class X-E at BB (sf)
-- Class E at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class X-FG 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 expectations since issuance. The collateral consists of 64 fixed-rate loans secured by 99 commercial properties, and as of the January 2018 remittance, there has been a collateral reduction of 1.9% since issuance. All loans in the pool are reporting YE2016 figures with a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.88 times (x) and 10.4%, respectively. This represents an increase from the respective YE2015 figures of 1.70x and 9.5%. The largest 15 loans in the pool collectively represent 61.7% of the transaction balance, and based on the YE2016 financials, these loans are reporting annualized WA net cash flow (NCF) growth of 8.6% over the DBRS NCF figures, with a WA DSCR and debt yield of 1.95x and 10.1%, respectively.

As of the January 2018 remittance, there were eight loans on the servicer’s watchlist, representing 10.5% of the pool, and one loan in special servicing, representing 5.7% of the pool. Six of the loans on the watchlist are being monitored for low occupancy or near-term rollover, with the remainder being monitored for a variety of issues. The specially serviced loan, Prospectus ID#5 – Fontainebleau Park Plaza, was transferred to special servicing in January 2017 after the master servicer determined that tenants at the property were not making their full rent and common area maintenance reimbursement deposits into the lockbox due to a dispute with the borrower over the reimbursement of tenant improvement work, which is considered an event of default. For additional information on this loan, please see the loan commentary on the DBRS Viewpoint platform, for which information is provided below.

Classes X-A, X-B, X-E and X-FG 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.

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 Mall
Prospectus ID#5 – Fontainebleau Park Plaza
Prospectus ID#7 – Lakewood Marketplace
Prospectus ID#9 – Briarwood Office
Prospectus ID#11 – Headquarters Village
Prospectus ID#12 – Stone Ridge Plaza
Prospectus ID#13 – WM Retail Portfolio
Prospectus ID#18 – Fairfield Inn – Morgantown
Prospectus ID#21 – Wolf Village Student Housing
Prospectus ID#24 – La Plata Shopping Center

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 commercial mortgage-backed securities universe, as well as deal and loan-level commentary for all DBRS-rated transactions.
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.