DBRS Confirms All Classes of JPMBB Commercial Mortgage Securities Trust 2015-C32

DBRS Limited (DBRS) confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2015-C32 issued by JPMBB Commercial Mortgage Securities Trust 2015-C32:

-- 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-5 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S 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 (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’s expectations since issuance. As of the September 2018 remittance, there has been a collateral reduction of 3.9% as a result of scheduled amortization. There are two loans that are fully defeased, representing 3.2% of the current pool balance. Loans representing 95.2% of the current pool balance have reported year-end (YE) 2017 financials, and according to those statements, those loans had a weighted-average (WA) debt-service coverage ratio (DSCR) and WA debt yield of 1.45 times (x) and 10.0%, respectively. Comparatively, the DBRS WA DSCR and WA debt yield for the pool at issuance were 1.37x and 8.8%, respectively. The largest 15 loans, excluding defeasance collateral, represent 53.1% of the current pool balance. Based on the YE2017 financials, those loans reported a WA net cash flow growth of 3.4% over the DBRS issuance figures, and a WA DSCR and WA debt yield of 1.31x and 8.86%, respectively.

At issuance, DBRS shadow-rated the U-Haul Portfolio Loan (Prospectus ID#5, 3.4% of the current pool balance) as investment grade. DBRS confirmed that the performance of the loan remains consistent with investment-grade loan characteristics.

As of the September 2018 remittance, there are ten loans on the servicer’s watchlist, representing 16.4% of the current pool balance, including two loans in the top 15. Prospectus ID#1 – Hilton Suites Chicago Magnificent Mile (6.7% of the current pool balance) was flagged for a depressed DSCR as a result of ongoing renovations at the subject that were anticipated at issuance; however, an increase in supply in the market likely has had a negative effect on performance as well. The majority of the watchlisted loans are being monitored for performance-related reasons, driven by cash flow declines, and DBRS applied a stressed cash flow to reflect the current performance of the subject properties as deemed appropriate. There are no loans in special servicing.

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
-- Hilton Suites Chicago Magnificent Mile
-- Palmer House Retail Shops
-- U-Haul Portfolio
-- Waterstone Apartments
-- Hyatt Place Texas Portfolio

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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.