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KBRA Downgrades Five Ratings and Affirms All Other Ratings for CSAIL 2015-C3

11 Jul 2025   |   New York

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KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for CSAIL 2015-C3, a $560.1 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since KBRA's last ratings change in July 2024. The rating actions also reflect KBRA's estimated losses for seven K-LOCs (51.9% of the pool balance) and the resulting loss adjusted C/E levels. The rating actions also consider the likelihood that interest shortfalls could reach higher in the capital stack during the resolution of the specially serviced assets.

As of the June 2025 remittance period, there are six specially serviced assets (34.0%) of which three (12.9%) are in foreclosure and three (20.1%) are non-performing matured balloon. KBRA identified 13 K-LOCs (67.8%), including the specially serviced assets. The K-LOCs are displayed in the table below.

K-LOCs Loss Given Default (000s) Loss Severity 03A1 The Mall of New Hampshire RT 100,000 17.9% N C Y Maturity 06/23/2022 $39,762 39.8% 04A1-2 Westfield Wheaton RT 97,000 17.3% Y NPM N Specially Serviced 04/14/2022 $38,086 39.3% 07A2 Westfield Trumbull RT 41,162 7.3% Y NPM N Foreclosure 04/28/2020 $24,704 60.0% 10 21 Astor Place RT 26,650 4.8% Y 30+ N Foreclosure 08/14/2023 $11,774 44.2% 9 16542 & 16550 Ventura OF 25,282 4.5% N C N Occupancy 08/14/2023 - - 11 Hendry Multifamily Portfolio MF 23,007 4.1% N C Y Maturity 02/03/2022 - - 19 16260 Ventura OF 16,732 3.0% N C N Maturity 06/23/2025 - - 29 4800 Sugar Grove OF 11,299 2.0% Y C N Maturity 06/08/2023 $2,794 24.7% 35 Millside Plaza RT 9,779 1.7% Y NPM Y NPM 05/12/2023 $2,793 28.6% 33 Colony Plaza RT 9,670 1.7% N C N Maturity 05/29/2025 - - 40 Staybridge Suites Brandywine LO 8,493 1.5% N MP N MP 06/23/2025 - - 59 Walgreens - Waterford RT 5,787 1.0% N NPM N NPM 06/24/2025 - - 65 PA Rite Aid Portfolio RT 4,683 0.8% Y 90+ N Foreclosure 06/08/2023 $1,470 31.4% Total K-LOCs $379,544 67.8% $121,383 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 78.9%, compared to 81.8% at KBRA's last ratings change, and 102.2% at securitization. The KDSC is 1.56x compared to 1.84x at KBRA's last ratings change, and 1.77x at securitization.

Details concerning the classes with ratings changes are as follows.

  • Class C to BBB (sf) from A- (sf)
  • Class D to CCC (sf) from B- (sf)
  • Class E 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: 1010332

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