DBRS Confirms All Classes of Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23

DBRS Limited (DBRS) confirmed the following ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-C23 issued by Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23:

-- 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 (sf)
-- Class C at A (sf)
-- Class PST at A (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (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 stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. As at the May 2018 remittance, there has been a collateral reduction of 2.4% as a result of scheduled amortization and one loan prepaying out of the Trust. Loans representing 98.8% of the current pool balance are reporting updated year-end figures. Based on these financials, those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.68 times (x) and 9.3%, respectively. The DBRS WA DSCR and WA debt yield at issuance for the pool were 1.64x and 8.6%, respectively. The largest 15 loans in the pool represent 57.7% of the transaction balance and 14 of those loans, representing 54.5% of the current pool balance, reported YE2017 financials, which showed a WA net cash flow growth of 6.1% over the DBRS issuance figures with a WA DSCR and WA debt yield of 1.67x and 8.6%, respectively.

At issuance, two loans, representing 9.3% of the current pool balance, were shadow-rated investment-grade. DBRS confirmed that the performance of these loans remains consistent with investment-grade loan characteristics.

As at the May 2018 remittance, there were seven loans on the servicer’s watchlist, representing 13.5% of the current pool balance, including two loans in the top 15; however, the majority of these loans are being monitored for non-performance related issues.

Classes X-A, X-B 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 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:

-- Prospectus ID#2 – 32 Old Slip Fee
-- Prospectus ID#7 – Hilton Garden Inn W 54th Street
-- Prospectus ID#11 – US StorageMart Portfolio
-- Prospectus ID#16 – Aviare Place Apartments

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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.