DBRS Morningstar Confirms All Classes of CSAIL 2015-C2 Commercial Mortgage Trust

DBRS Limited (DBRS Morningstar) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-C2 issued by CSAIL 2015-C2 Commercial Mortgage Trust as follows:

-- Class A-3 at AAA (sf)
-- Class A-4 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 C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class X-E at BB (sf)
-- Class E at BB (low) (sf)
-- Class X-F at B (high) (sf)
-- Class F at B (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has generally remained in line with DBRS Morningstar’s expectations since issuance. As of the February 2020 remittance, there has been a collateral reduction of 7.8% since issuance, with 111 of the 118 original loans remaining in the pool. Seven loans, representing 6.2% of the pool, including two loans in the top 15, are fully defeased.

Loans representing 87.2% of the current pool balance are reporting YE2019 or YE2018 figures, with a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.90 times (x) and 10.3%, respectively. The largest 15 loans represent 46.2% of the pool and the majority of those loans reported partial-year 2019 financials, with a WA DSCR and debt yield of 1.97x and 9.6%, respectively, representing a WA net cash flow growth of 12.1% over the DBRS Morningstar cash flow figures derived at issuance.

As of the February 2020 remittance, 15 loans are on the servicer’s watchlist and three loans are in special servicing, representing 9.6% and 2.8% of the pool, respectively. The largest loan in special servicing, The Depot (Prospectus ID#6, 2.4% of the current pool balance), is secured by a 642-bed student housing property in Akron, Ohio, serving the students of the University of Akron. The loan has been in special servicing since July 2016, after cash flow declines led to debt service short falls.

The transaction has a retail concentration of 38.1%, with two of the top five loans being secured by regional malls that have Macy’s and JCPenney as anchor tenants. Since both Macy’s and JCPenney have recently announced plans for mass closures across their mall portfolios in the next several years, DBRS Morningstar will monitor both loans closely for developments and will provide loan commentary updates on the DBRS Viewpoint platform as new information becomes available.

Classes X-A, X-B, X-E, and X-F 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 are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#1 – Westfield Wheaton (7.5% of the pool)
-- Prospectus ID#5 – Westfield Trumbull (2.7% of the pool)
-- Prospectus ID#6 – The Depot (2.4% of the pool)
-- Prospectus ID#22 – Hall Office Park G2 Building (1.4% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes issuer and servicer data for most outstanding CMBS transactions (including non-DBRS Morningstar-rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

Notes:
The principal methodology is North American CMBS Surveillance Methodology, which can be found on www.dbrs.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. 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.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

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 [email protected].

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar 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. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

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