DBRS Morningstar Confirms Ratings on All Classes of JPMBB Commercial Mortgage Securities Trust 2015-C33

DBRS Limited (DBRS Morningstar) confirmed its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-C33 issued by JPMBB Commercial Mortgage Securities Trust 2015-C33 as follows:

-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class B at AA (sf)
-- Class X-C at A (sf)
-- Class C at A (low) (sf)
-- Class D-1 at BBB (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class D-2 at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at BB (low) (sf)
-- Class G at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since issuance, when the pool consisted of 64 loans. As of the December 2021 remittance, 62 loans remain in the pool, with repayments and amortization representing a collateral reduction of 11.2% since issuance. Six loans, representing 6.5% of the pool balance, are fully defeased. There are three loans in special servicing and 11 loans on the servicer’s watchlist, representing 4.9% and 18.7% of the pool balance, respectively. One of the specially serviced loans represents the bulk of the exposure to defaulted loans for the pool and as further described below, DBRS Morningstar does not anticipate a significant loss based on the information provided to date. For the watchlisted loans, stressed probability of default (POD) scenarios were applied to increase the expected loss where significantly increased risks were observed. Although the risks for these loans are elevated as compared with issuance, the overall increased risk to the trust is low, supporting the ratings confirmations with Stable trends.

The DoubleTree Anaheim – Orange County loan (Prospectus ID#4, 4.0% of the pool balance) is the largest loan in special servicing and is secured by a 461-key, full-service hotel in Orange County, California. The loan transferred to special servicing in July 2020 for payment default. According to PR Newswire in June 2021, AWH Partners and a subsidiary of Apollo Global Management acquired the subject property with Spire Hospitality taking over management of the property shortly thereafter. The financial terms of the transfer were not disclosed, however new management indicated plans for a fulsome renovation. When the loan assumption was processed, the loan was brought current through the September 2021 payment but has since fallen delinquent again, with the loan reporting 60 days delinquent with the December 2021 remittance. It is unclear if the loan payments were made or if the issue is administrative in nature, as the special servicer’s commentary suggests ongoing efforts to work with the master servicer to onboard the new sponsor’s information. An updated appraisal as of July 2021 valued the property at $66.5 million, which is a 20.6% decline from issuance but an improvement from the August 2020 value of $61.1 million and well in excess of the whole-loan amount of $44.7 million. The subject has historically performed well and benefits from major demand drivers including Disnleyland and the Anaheim Convention Center. DBRS Morningstar analyzed this loan with an elevated POD to increase the expected loss with this review.

The Plaza Paseo Del Norte loan (Prospectus ID#13, 2.4% of the pool balance) is on the DBRS Morningstar Hotlist because of concerns with the loss of the former largest tenant, Cinemark Movies West, which left in May 2020. Occupancy previously fell after the loss of a Sears Outlet in 2017; that space was ultimately back-filled by Jungle Jam. The occupancy rate remains low when compared with issuance, but the property benefits from a Target shadow anchor and is well located within a heavily traveled commercial area. With this review, DBRS Morningstar increased the POD to increase the expected loss.

ESG CONSIDERATIONS
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.

Classes X-A, X-B, X-C, and X-D 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#4 – DoubleTree Anaheim – Orange County (4.0% of the pool)
-- Prospectus ID#13 – Plaza Paseo Del Norte (2.4% 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 (March 26, 2021), 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.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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.

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

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