DBRS Confirms All Classes of COMM 2015-CCRE27 Mortgage Trust

DBRS Limited (DBRS) confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-CCRE27 issued by COMM 2015-CCRE27 Mortgage Trust:

-- 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 (sf)
-- Class X-B at A (high) (sf)
-- Class C at A (sf)
-- Class X-C at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class X-D at BB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class X-E at B (sf)
-- Class G at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since issuance. The collateral consists of 65 loans secured by 96 commercial and multifamily properties. As of the September 2018 remittance, the pool had an aggregate trust balance of approximately $913.0 million, representing a collateral reduction of 2.0% since issuance due to scheduled loan amortization. To date, one loan is fully defeased (1.6% of the current pool balance), while another loan (1.6% of the current pool balance) is partially defeased. Together, these loans represent 3.2% of the pool; however, only 2.3% of that is defeased. Based on the most recent year-end financials, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) and debt yield of 1.77 times (x) and 9.9%, respectively, compared with the DBRS Term figures of 1.61x and 8.8% at issuance, respectively. The pool has benefited from stable cash flow performance as the top 15 loans, representing 58.9% of the current pool balance, reported a WA DSCR of 1.88x, compared with the WA DBRS Term DSCR of 1.56x, representing a WA net cash flow (NCF) growth of 18.8%.

As of the September 2018 remittance, there are three loans (3.5% of the pool) on the servicer’s watchlist. Two of the loans, representing 2.4% of the current pool balance are secured by hotel properties, while one loan, representing 1.1% of the current pool balance is secured by a mixed-use property. All three loans were flagged due to performance declines, reporting a WA DSCR of 0.94x as of YE2017, compared with the WA DBRS Term DSCR of 1.63x. The loan secured by the mixed-use property, Chestnut Street (Prospectus ID#31), has historically been late on payments and is due for its September 2018 payment.

At issuance, DBRS assigned an investment-grade shadow rating to one loan, 11 Madison Avenue (Prospectus ID#1, representing 7.6% of the pool balance). DBRS confirmed that the performance of this 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:

-- 11 Madison Avenue
-- Midwest Shopping Center Portfolio
-- Green Valley Corporate Center
-- HGI Kennewick

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 North American CMBS 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.

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.