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KBRA Downgrades Five Ratings and Affirms All Other Ratings for COMM 2015-LC23

26 Sep 2025   |   New York

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KBRA downgrades the ratings of five classes and affirms all other outstanding ratings of COMM 2015-LC23, a $396.3 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction which has exhibited a significant increase in KBRA's estimated losses since last review. The rating actions also consider deleveraging of the transaction from loan payoffs, amortization and defeasance, as well as the risk of interest shortfalls reaching higher in the capital structure as the special servicer resolves the specially serviced assets and those loans unable to pay off at their upcoming maturity.

As of the September 2025 remittance period, there are two specially serviced assets (29.3%), of which one is REO (11.6%). KBRA identified eight K-LOCs (51.7%), including the specially serviced assets. Of the K-LOCs, five (40.1%) have estimated losses. The K-LOCs are depicted in the table below.

K-LOCs Loss Given Default (000s) Loss Severity 2 32 Avenue of the Americas OF 70,000 17.7% Y C N Occupancy 12/05/2023 $30,051 42.9% 4 1209 DeKalb MF 46,000 11.6% Y REO N REO 11/18/2020 $11,789 25.6% 10 Springfield Mall RT 26,299 6.6% N C Y Lease Rollover 06/04/2020 $9,026 34.3% 17 Lake Creek Festival RT 16,887 4.3% N C N Maturity 04/09/2025 - - 18 Wedgewood Building OF 15,541 3.9% N C N Occupancy 07/08/2025 - - 20 Addison Town Center RT 13,288 3.4% N C N DSCR 08/05/2025 - - 27 Brown Street Centre OF 9,948 2.5% N C N Maturity 10/24/2024 $1,808 18.2% 35 Walgreens VA Beach RT 6,770 1.7% N C N Maturity 05/01/2025 $32 0.5% Total K-LOCs $204,732 51.7% $52,706 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 78.1%, compared to 82.3% at last review and 102.1% at securitization. The KDSC is 1.73x, compared to 1.81x at last review and 1.74x at issuance.

Details concerning the classes with a rating change are as follows:

  • Class F to CCC (sf) from B- (sf)
  • Class G to CC (sf) from CCC (sf)
  • Class H to C (sf) from CC (sf)
  • Class X-D to CCC (sf) from B- (sf)
  • Class X-E to C (sf) from CC (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011461