DBRS Confirms All Ratings of JPMBB Commercial Mortgage Securities Trust 2015-C33

DBRS Limited (DBRS) confirmed the Commercial Mortgage Pass-Through Certificates, Series 2015-C33 (the Certificates), issued by JPMBB 2015-C33 Commercial Mortgage Trust as follows:

-- 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 AA (high) (sf)
-- Class B at AA (sf)
-- Class X-C at A (sf)
-- Class C at A (low) (sf)
-- Class D-1 at BBB (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class D-2 at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at BB (low) (sf)
-- Class G at B (low) (sf)

All trends are Stable. The Classes D-1 and D-2 may be exhchanged for the Class D certificates (and vice versa).

The rating confirmations reflect the overall stable performance exhibited by the transaction since issuance. As of the October 2018 remittance, 63 of the 64 loans remain in the pool with an aggregate principal balance of $743.1 million, representing a collateral reduction of 2.5% since issuance as the result of scheduled loan amoritization and the prepayment of one loan.

At issuance, the weighted-average (WA) DBRS Term debt service coverage ratio (DSCR) and DBRS debt yield were 1.60 times (x) and 8.7%, respectively. Based on YE2017 financials for the underlying loans, the pool reported a WA DSCR and WA debt yield of 1.83x and 10.2%, respectively. The YE2017 figures are reflective of a WA net cash flow (NCF) growth of 15.7% over the DBRS NCF figures at issuance.

The largest fifteen loans in the pool, which represent 60.7% of the pool, reported a YE2017 WA DSCR and WA debt yield of 1.87x and 10.1%, respectively, experiencing a WA NCF growth of 12.8% over the DBRS issuance figures, ranging from -26.9% to +59.3%.

As of the October 2018 remittance, there were six loans, representing 8.3% of the pool, on the servicer’s watchlist. The 1106 South Euclid Apartments loan (Prospectus ID #37, 0.8% of the pool) is being monitored for a DSCR below 1.10x as performance of the loan has declined due to an oversupply in the student housing market, resulting in concessions being given by the borrower to incoming tenants in order to maintain occupancy. The loan reported a YE2017 DSCR of 0.99x, compared with the DBRS Term DSCR at issuance of 1.14x. The Holiday Inn Express & Suites Meadowlands loan (Prospectus ID #26, 1.3% of the pool) is also being monitored for its depressed performance and recently transferred to the servicer’s watchlist with the October 2018 remittance. The servicer noted that demand within the market is soft due to oversupply of inventory and as such, the borrower is offering competitive pricing to increase its occupancy rate. In addition, the surrounding area has been undergoing substantial development for the opening of American Dream Meadowlands, a retail and entertainment complex that is slated to open by YE2018. The remaining watchlisted loans are being monitored for deferred maintenance issues.

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:

-- Plaza Paseo Del Norte (Prospectus ID #13, 2.3% of pool)
-- Los Altos Ranch Market (Prospectus ID #15, 2.1% of pool)
-- Holiday Inn Express & Suites Meadowlands (Prospectus ID #26, 1.3% of pool)
-- 1106 South Euclid Apartments (Prospectus ID #37, 0.8% of pool)

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.