DBRS Morningstar Confirms All Ratings of COMM 2015-CCRE27 Mortgage Trust

DBRS Limited (DBRS Morningstar) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-CCRE27 issued by COMM 2015-CCRE27 Mortgage Trust as follows:

-- 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. At issuance, the transaction consisted of 65 loans and an original trust balance of $931.6 million. As of the February 2020 remittance, all the loans remained in the trust with a balance of $898.4 million, representing a collateral reduction of 3.6% due to loan repayments and scheduled loan amortization. The pool benefits from seven loans (8.2% of the pool) that are fully defeased.

Based on the most recent year-end reporting available, loans representing 91.8% of the current pool balance reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.78 times (x) and 10.1%, respectively. In addition, loans representing 66.9% of the pool reported partial-year 2019 financials with a WA DSCR and debt yield of 1.75x and 10.1%, respectively.

As of the February 2020 remittance, there were two loans, representing 1.5% of the pool balance, in special servicing and 10 loans, representing 17.6% of the pool balance, on the servicer’s watchlist. The largest loan in special servicing (Prospectus ID#31 – Chestnut Street) is secured by a mixed-use property located in Philadelphia, Pennsylvania. The loan transferred to the special servicer in January 2019 as the borrower was non-compliant with the cash management provisions associated with the single-tenant Foot Locker space, which had a lease expiration in June 2019. According to the servicer, the borrower is complying with the cash management provision as of March 2020, and a lease renewal has been executed, although updated lease terms were not provided. For additional information on this loan, please see the loan commentary in the DBRS Viewpoint platform.

The smaller loan in special servicing is Parkway Plaza Shopping Center (Prospectus ID#54 – 0.4% of the pool balance), which is secured by a 52,365 sf retail property in Brunswick, Georgia. The loan transferred to special servicing in October 2019 as a result of an unapproved equity transfer. The special servicer is in ongoing discussions with the borrower regarding a plan to resolve the technical default.

At issuance, DBRS Morningstar assigned an investment-grade shadow rating to one loan, 11 Madison Avenue (Prospectus ID#1, representing 7.8% of the pool balance). DBRS Morningstar confirmed that the performance of this loan remains consistent with investment-grade loan characteristics.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

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 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 – 11 Madison Avenue (7.8% of the pool)
-- Prospectus ID#6 – Midwest Shopping Center Portfolio (3.9% of the pool)
-- Prospectus ID#31 – Chestnut Street (1.1% of the pool)
-- Prospectus ID#54 – Parkway Plaza Shopping Center (0.4% 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:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology, which can be found on dbrsmorningstar.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 dbrsmorningstar.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.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

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.dbrsmorningstar.com or contact us at [email protected].

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