Press Release

DBRS Morningstar Downgrades and Removes Four Classes of JPMBB 2015-C29 from Under Review with Negative Implications

CMBS
November 24, 2020

DBRS Limited (DBRS Morningstar) downgraded four classes of the Commercial Mortgage Pass-Through Certificates, Series 2015-C29 issued by JPMBB Commercial Mortgage Securities Trust 2015-C29 as follows:

-- Class X-E to BB (sf) from BB (high) (sf)
-- Class E to BB (low) (sf) from BB (sf)
-- Class X-F to B (high) (sf) from BB (low) (sf)
-- Class F to B (sf) from B (high) (sf)

In addition, DBRS Morningstar confirmed the remaining classes as follows:

-- Class A-3A1 at AAA (sf)
-- Class A-3A2 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 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)

In addition, DBRS Morningstar discontinued the rating on Class A-2 as it was paid out as of an earlier remittance.

Classes E, F, X-E, and X-F were removed from Under Review with Negative Implications, where they were placed on August 6, 2020. The trends for these classes are Negative. In addition, DBRS Morningstar changed the trends for Classes D and X-D from Stable to Negative. All other trends are Stable. The Negative trends and rating downgrades reflect the continued performance challenges for the underlying collateral, much of which has been driven by the impacts of the global Coronavirus Disease (COVID-19) pandemic. In addition to loans representing 8.3% of the pool in special servicing as of the October 2020 remittance, DBRS Morningstar also notes the pool has a significant concentration of retail and hospitality properties, representing 16.8% and 13.5% of the pool balance, respectively. These property types have been the most severely affected by the initial effects of the coronavirus pandemic and as such, those concentrations suggest increased risks for the pool, particularly at the lower rating categories, since issuance.

As of the October 2020 remittance, 54 of the original 63 loans remain in the pool, representing a collateral reduction of 28.7% since issuance. There are three loans, representing 8.3% of the pool, in special servicing, including the fifth- and sixth-largest loans, Aspen Heights – Texas A&M University Corpus Christi (Prospectus ID#11, 3.7% of the pool) and Horizon Outlet Shoppes Portfolio (Prospectus ID#10, 3.6% of the pool). Additionally, there are 11 loans, representing 36.0% of the pool, on the servicer’s watchlist. These loans are being monitored for various reasons including low debt service coverage ratio (DSCR) or occupancy, tenant rollover risk, and/or pandemic-related forbearance requests.

Aspen Heights – Texas A&M University Corpus Christi transferred to special servicing in December 2019 after the borrower withheld rents from the loan’s deposit account in addition to failing to make the December 2019 senior mortgage payment. This loan is secured by a student housing apartment complex that has struggled over the last few years, reporting a DSCR less than 1.00 times (x) in both 2018 and 2019 with occupancy rates less than 80.0%. The borrower had previously agreed to resolve the loan with a discounted payoff in January 2020, however the sale fell through due to pandemic-related financing delays. According to a March 2020 appraisal, the collateral was valued at $27.3 million, down from the issuance value of $39.2 million. This loan was analyzed with a liquidation scenario that implied a loss severity in excess of 30.0%.

Horizon Outlet Shoppes Portfolio, a pari passu loan, transferred to special servicing in March 2020 prior to the onset of the pandemic. According to a March 2020 appraisal obtained by the special servicer, the collateral portfolio of three outlet malls located in Wisconsin, Washington, and Indiana was valued at $39.1 million, down from the issuance value of $87.4 million and well below the total senior loan balance of $51.5 million. As of the October 2020 remittance, the loan is more than 121 days delinquent and a receiver was appointed at all three properties by August 2020. The special servicer reports discussions regarding a potential deed-in-lieu have been held, with a foreclosure strategy also being dual-tracked. The collateral properties are located in tertiary and rural markets, and the servicer reported a year-end 2019 DSCR of 0.91x. Given the sharp value decline from issuance and the likelihood that the trust will eventually own the collateral properties, this loan was analyzed with a liquidation scenario that implied a loss severity in excess of 50.0%. For more information on these loans, please visit www.viewpoint.dbrsmorningstar.com.

ESG CONSIDERATIONS
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, 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:

-- Aspen Heights – Texas A&M University Corpus Christi (Prospectus ID#11, 3.7% of the pool)
-- Horizon Outlet Shoppes Portfolio (Prospectus ID#10, 3.6% 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 the North American CMBS Surveillance Methodology (March 6, 2020), 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.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

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@dbrsmorningstar.com.

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.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar’s outlooks and ratings are monitored.

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

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada

Ratings

  • Date IssuedDebt RatedRatingTrendActionAttributesi
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class X-DBBB (sf)NegTrend Change, Confirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class DBBB (low) (sf)NegTrend Change, Confirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class X-EBB (sf)NegDowngraded, Trend Change
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class EBB (low) (sf)NegDowngraded, Trend Change
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class X-FB (high) (sf)NegDowngraded, Trend Change
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class FB (sf)NegDowngraded, Trend Change
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class A-3A1AAA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class A-3A2AAA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class A-4AAA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class A-SAAA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class A-SBAAA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class X-AAAA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class X-BAA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class BAA (low) (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class X-CA (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class CA (low) (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class ECA (low) (sf)StbConfirmed
    CA
    24-Nov-20Commercial Mortgage Pass-Through Certificates, Series 2015-C29, Class A-2Discontinued--Disc.-Repaid
    CA
    More
    Less
JPMBB Commercial Mortgage Securities Trust 2015-C29
  • Date Issued:Nov 24, 2020
  • Rating Action:Trend Change, Confirmed
  • Ratings:BBB (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Trend Change, Confirmed
  • Ratings:BBB (low) (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Downgraded, Trend Change
  • Ratings:BB (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Downgraded, Trend Change
  • Ratings:BB (low) (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Downgraded, Trend Change
  • Ratings:B (high) (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Downgraded, Trend Change
  • Ratings:B (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:AA (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:A (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:A (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Confirmed
  • Ratings:A (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:CA
  • Date Issued:Nov 24, 2020
  • Rating Action:Disc.-Repaid
  • Ratings:Discontinued
  • Trend:--
  • Rating Recovery:
  • Issued:CA
  • 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

ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.