Press Release

DBRS Morningstar Confirms Classes of COMM 2015-PC1 Mortgage Trust and Removes Interest in Arrears

CMBS
March 19, 2020

DBRS, Inc. (DBRS Morningstar) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-PC1 issued by COMM 2015-PC1 Mortgage Trust as follows:

-- 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-M at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class X-B at A (sf)
-- Class C at A (low) (sf)
-- Class X-C at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class X-D at BB (sf)
-- Class E at BB (low) (sf)
-- Class X-E at B (sf)
-- Class F at B (low) (sf)

All trends are Stable.

DBRS Morningstar removed the Interest in Arrears designation for Class F.

The rating confirmations reflect the overall stable performance of the transaction since issuance, when the transaction was composed of 80 loans secured by 147 commercial and multifamily properties. As of the February 2020 remittance, there has been a collateral reduction of 7.5% with 74 loans secured by 140 properties remaining in the transaction. In the past 12 months, four loans have been repaid in full and three loans have been fully defeased, for a total of four defeased loans in the transaction, representing 3.1% of the pool balance as of the February 2020 remittance.

The pool is diverse by loan size as the largest 10 loans comprise 40.0% of the pool balance. Additionally, DBRS Morningstar considers the property quality of five loans, representing 14.9% of the pool balance, to be Above Average at issuance. The pool is concentrated by property type as office properties represent 37.4% of the pool balance and lodging properties represent 22.3%. Twelve loans, comprising 22.9% of the pool, including two of the largest four loans, are structured with full-term interest-only (IO) payments. Approximately 96.2% of the pool reported a weighted average (WA) preceding year debt service coverage ratio (DSCR) of 1.81 times (x) and a WA loan-to-value ratio (LTV) of 64.2%, compared with the issuer’s WA DSCR of 1.70x and WA LTV of 66.9% derived at issuance.

As of the February 2020 remittance, there were three loans, representing 5.0% of the pool balance, in special servicing and an additional nine loans, representing 19.9% of the pool balance, on the servicer’s watchlist.

Three of the top five loans, representing 14.7% of the pool balance, are on the servicer’s watchlist for various reasons. Princeton GSA Portfolio (8.1% of the pool balance – Prospectus ID#2) is secured by three office properties in Sacramento, California; San Diego; and Houston. The loan was added to the servicer’s watchlist in December 2019 because a tenant of the Sacramento property, General Services Administration, has a lease expiration in May 2020.

The Plaza at Harmon Meadow (3.6% of the pool – Prospecuts ID#4) is secured by a mixed-use office-retail property in Secaucus, New Jersey, and was added to the watchlist in January 2020 because of the upcoming loan maturity in April 2020. CORE West Industrial Portfolio (3.0% of the pool – Prospecuts ID#5) is secured by 10 industrial warehouse properties around Grand Rapids, Michigan, and was added to the servicer’s watchlist in April 2019 for deferred maintenance.

Two of the largest 11 loans, representing 4.2% of the pool, are in special servicing; however, the outlook for both is relatively favorable as outlined, below.

Riverview Center (2.2% of the pool balance – Prospectus ID#6) is secured by a mixed-use office-industrial warehouse property in Menands, New York, and was transferred to the special servicer in December 2019 after the borrower requested a short-term loan extension to the April 2020 loan maturity. The borrower requested additional time to renew two leases with the State of New York and noted the debt cannot be refinanced without the lease renewals. DBRS Morningstar increased the probability of default for the loan as part of the review.

100 Pearl Street (2.0% of the pool balance – Prospectus ID#11) is secured by a high-rise office building in Hartford, Connecticut, and was transferred to the special servicer in May 2018 upon notice that its largest tenant would vacate at its lease expiration in December 2018. The special servicer reported a new lease had been executed with a tenant that will occupy 29.8% of the net rentable area and the lease has been approved by the special servicer. The loan is expected to return to the master servicer in the near term as a result of the new lease.

Classes X-A, X-B, X-C, X-D, and X-E are 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#2 – Princeton GSA Portfolio (8.1% of the pool)
-- Prospectus ID#6 – Riverview Center (2.2% of the pool)
-- Prospectus ID#7 – 760 & 800 Westchester (2.4% of the pool) - DBRS Morningstar Hotlist
-- Prospectus ID#11 – 100 Pearl Street (2.0% of the 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 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:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is the 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 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.

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

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602

Ratings

  • Date IssuedDebt RatedRatingTrendActionAttributesi
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class A-2AAA (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class A-3AAA (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class A-4AAA (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class A-5AAA (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class A-M AAA (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class A-SBAAA (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class X-A AAA (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class BAA (low) (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class X-B A (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class CA (low) (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class X-C BBB (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class DBBB (low) (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class X-D BB (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class EBB (low) (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class X-E B (sf)StbConfirmed
    US
    19-Mar-20Commercial Mortgage Pass-Through Certificates, Series 2015-PC1, Class FB (low) (sf)StbConfirmed
    US
    More
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COMM 2015-PC1 Mortgage Trust
  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

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