DBRS Confirms All Classes of JPMBB Commercial Mortgage Securities Trust 2015-C31

DBRS Limited (DBRS) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-C31 issued by JPMBB Commercial Mortgage Trust 2015-C31 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 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 AA (sf)
-- Class B at AA (low) (sf)
-- Class X-C at A (sf)
-- Class C at A (low) (sf)
-- Class EC at A (low) (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F 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. As of the June 2018 remittance, there has been a collateral reduction of 2.8% as a result of scheduled amortization. Loans representing 68.3% of the current pool balance show a YE2017 analysis in the servicer’s reporting. Those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.40 times (x) and 8.9%, respectively. The WA DBRS Term DSCR and WA DBRS Debt Yield for those same loans at issuance was 1.34x and 8.2%, respectively. Two loans, representing 3.6% of the current pool balance, are fully defeased, including one loan in the top 15, Prospectus ID#14 – Klotz Multifamily Portfolio, representing 2.9% of the current pool balance.

The largest 15 loans in the pool represent 65.9% of the current pool balance. All of these loans, excluding the defeased loan, reported year-end 2017 cash flows, with a WA net cash flow growth of 9.5% over the DBRS issuance figures and a WA YE2017 DSCR and WA in-place debt yield of 1.35x and 8.6%, respectively.

As of the June 2018 remittance, there were four loans on the servicer’s watchlist, representing 4.7% of the current pool balance. The largest watchlisted loan, Prospectus ID#13 – 1500 Champa Street (2.8% of the current pool balance), is being monitored for rollover risk, as the third-largest tenant, GSA Administration (13.8% of the net rentable area) has a lease scheduled to expire in August 2018, at which time a cash flow sweep would be triggered; however, the servicer confirmed that the tenant will be renewing its lease, and as such, DBRS expects the loan will be removed from the watchlist in the near term. The loan reported a YE2017 DSCR of 1.40x compared with the YE2016 DSCR of 1.38x and DBRS Term DSCR at issuance of 1.13x. The remaining loans are being monitored for a variety of issues, including Hurricane Harvey damage and a bankrupt single tenant in Babies “R” Us. Where merited, DBRS applied a stressed cash flow scenario to inflate the probability of default for this review.

Classes X-A, X-B, X-C and X-D 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:

-- Civic Opera Building
-- Cumberland Apartments
-- Parkwood I & Willowbrook I & II Portfolio
-- Babies R Us – Miami International Mall

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 CMBS 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.