DBRS Morningstar Confirms All Classes of Morgan Stanley Capital I Trust 2015-MS1

DBRS Limited (DBRS Morningstar) confirmed the ratings of all classes of Commercial Mortgage Pass-Through Certificates, Series 2015-MS1 issued by Morgan Stanley Capital I Trust 2015-MS1 as follows:

-- Class A-2 at AAA (sf)
-- 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 B at AA (sf)
-- Class C at A (high) (sf)
-- Class PST at A (high) (sf)
-- Class D at BBB (sf)
-- Class E at BB (high) (sf)
-- Class F at B (high) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has had a collateral reduction of just 4.2% since issuance with all of the original 54 loans remaining in the pool as of the February 2021 remittance report.

The February 2021 remittance report also noted that 14 loans, representing 21.7% of the pool, were on the servicer’s watchlist and four loans, representing 14.2% of the pool, were in special servicing, including two loans in the top 10. The largest loan in special servicing, Waterfront at Port Chester (Prospectus ID#4, 6.3% of the pool), secured by a 350,000-square-foot power center in Port Chester, New York, transferred to special servicing in June 2020 for payment default. The property is shadow anchored by a noncollateral Costco. The largest collateral tenants include Stop & Shop (20.1% of net rentable area (NRA), lease expires August 2030), Loews Cineplex Entertainment (20.0% of NRA, lease expires December 2030), and Bed Bath & Beyond (10.3% of NRA, lease expires January 2022). The loan previously performed at a 1.39 times (x) debt service coverage ratio (DSCR) at YE2019 but requested payment relief because of the Coronavirus Disease (COVID-10) pandemic. An updated appraisal as of September 2020 valued the property at $106.0 million, a 40.5% decline from the issuance value of $178.0 million. The lender is currently evaluating its options for a loan modification. DBRS Morningstar analyzed this loan with a stressed probability of default for this analysis.

The second-largest loan in special servicing, Hilton Garden Inn W 54th Street (Prospectus ID#8, 4.7% of the pool), secured by a 401-room select-service hotel in Midtown Manhattan, New York, transferred to special servicing in May 2020 for payment default. The property is well located near several major tourist destinations but has failed to meet issuance expectations because of significant supply increases over the past several years. The loan most recently performed at a 1.68x DSCR as of YE2019. The borrower was able to use funds in an excess cash reserve to make debt service payments but the reserve was depleted as of October 2020. As of February 2021, the loan was more than 60 days delinquent. The borrower has submitted a proposal for a loan modification which is currently being negotiated. DBRS Morningstar analyzed this loan with a stressed probability of default for this analysis.

At issuance, DBRS Morningstar assigned investment-grade shadow ratings to three loans, 32 Old Slip Fee (Prospectus ID#3, 7.1% of pool), Alderwood Mall (Prospectus ID#5, 4.9% of pool), and 841-853 Broadway (Prospectus ID#6, 5.9% of pool). With this review, DBRS Morningstar confirmed that the performance of these loans remains consistent with investment-grade loan characteristics.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Class X-A is an interest-only (IO) certificate that references 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#4 – Waterfront at Port Chester (6.3% of the pool)
-- Prospectus ID#8 – Hilton Garden Inn W 54th Street (4.7% 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 (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.

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

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