DBRS Confirms All Classes of COMM 2015-LC21 Mortgage Trust

DBRS Limited (DBRS) confirmed the ratings for all classes of Commercial Pass-Through Certificates, Series 2015-LC21 issued by COMM 2015-LC21 Mortgage Trust as follows:

--Class A-1 at AAA (sf)
--Class A-2 at AAA (sf)
--Class A-SB at AAA (sf)
--Class A-3 at AAA (sf)
--Class A-4 at AAA (sf)
--Class A-M at AAA (sf)
--Class X-A at AAA (sf)
--Class B at AA (low) (sf)
--Class X-B at A (sf)
--Class C at A (low) (sf)
--Class X-C at BBB (sf)
--Class D at BBB (low) (sf)
--Class X-D at BB (sf)
--Class E at BB (low) (sf)
--Class X-E at B (sf)
--Class F at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has generally remained in line with DBRS’s expectations since issuance. The collateral consists of 103 loans secured by 198 commercial properties, and as of the April 2018 remittance, the pool has experienced a collateral reduction of 2.2% since issuance due to scheduled amortization, with all loans remaining in the pool. There are 13 loans (25.1% of the pool balance), including six of the top 15 loans (19.9% of the pool), that were structured with full interest-only (IO) payment terms at issuance. In addition, 40 loans, representing 37.1% of the pool, were structured with partial IO periods at issuance, with 11 of those loans (11.4% of the pool) still in a partial IO period as of April 2018. Based on the most recent year-end (YE) reporting for the underlying loans, the pool reported a weighted-average (WA) debt-service coverage ratio (DSCR) and WA in-place debt yield of 1.76 times (x) and 9.7%, respectively. At issuance, the WA DBRS Term DSCR and WA DBRS Debt Yield for the pool was 1.58x and 8.6%, respectively. The top 15 loans, which represent 41.8% of the pool balance, reported a WA DSCR of 2.03x as of the most recent YE reporting in the servicer’s files, with a WA net cash flow growth of 12.6% for those loans over the DBRS issuance figures.

As of the April 2018 remittance, there are no loans in special servicing and eight loans (5.9% of the pool balance) on the servicer’s watchlist. The loans on the watchlist are being monitored for a variety of reasons, including upcoming rollover and/or declining cash flows. The largest loan on the watchlist, Anchorage Business Park (Prospectus ID#11; 1.8% of the pool balance), is being monitored for a low YE2017 DSCR of 0.92x, which is the product of a decline in occupancy for the collateral property.

At issuance, DBRS shadow-rated the largest loan, Courtyard by Marriott Portfolio (Prospectus ID#1; 7.4% of the pool balance), investment grade. With this review, DBRS confirms that the performance of that loan remains consistent with investment-grade loan characteristics.

Classes X-A, X-B, X-C, X-D and X-E are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation 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:

-- University Fountains at Lubbock (Prospectus ID#7; 2.1% of the pool balance)
-- Anchorage Business Park (Prospectus ID#11; 1.8% of the pool balance)
-- aLoft Hotel Minneapolis (Prospectus ID#32; 1.2% of the pool balance)
-- Shoppes of Beavercreek (Prospectus ID#35; 0.8% of the pool balance)
-- Cole Village (Prospectus ID#60; 0.6% of the pool balance)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire commercial mortgage-backed security 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.