Fitch to Rate COMM 2015-CCRE24 Commercial Mortgage Trust Pass-Through Ctfs; Presale Issued

NEW YORK--()--Fitch Ratings has issued a presale report on Deutsche Bank Securities, Inc.'s COMM Mortgage Trust 2015-CCRE24 commercial mortgage pass-through certificates.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$70,050,000 class A-1 'AAAsf'; Outlook Stable;

--$14,480,000 class A-2 'AAAsf'; Outlook Stable;

--$107,950,000 class A-SB 'AAAsf'; Outlook Stable;

--$8,360,000 class A-3 'AAAsf'; Outlook Stable;

--$250,000,000 class A-4 'AAAsf'; Outlook Stable;

--$520,508,000 class A-5 'AAAsf'; Outlook Stable;

--$1,056,733,000b class X-A 'AAAsf'; Outlook Stable;

--$85,025,000b class A-M 'AAAsf'; Outlook Stable;

--$95,435,000 class B 'AA-sf'; Outlook Stable;

--$62,467,000 class C 'A-sf'; Outlook Stable;

--$71,143,000 class D 'BBB-sf'; Outlook Stable;

--$157,902,000ab class X-B 'A-sf'; Outlook Stable;

--$71,143,000ab class X-C 'BBB-sf'; Outlook Stable;

--$31,234,000ab class X-D 'BB-sf'; Outlook Stable;

--$31,234,0000a class E 'BB-sf'; Outlook Stable;

--$13,881,000a class F 'B-sf'; Outlook Stable.

(a) Privately placed and pursuant to Rule 144A.

(b) Notional amount and interest-only.

The expected ratings are based on information provided by the issuer as of July 16, 2015. Fitch does not expect to rate the $15,617,000 class G, $41,645,303 class H, $29,498,000 interest-only class X-E, or the $41,645,303 interest-only class X-F.

The certificates represent the beneficial ownership interest in the trust, primary assets of which are 81 loans secured by 128 commercial properties having an aggregate principal balance of approximately $1.4 billion as of the cut-off date. The loans were contributed to the trust by German American Capital Corporation, Cantor Commercial Real Estate lending, L.P., Ladder Capital Financial LLC and Pillar Funding LLC

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 73.3% of the properties by balance, cash flow analysis of 80.9%, and asset summary reviews on 80.9% of the pool.

KEY RATING DRIVERS

Leverage in Line with 2014 and 2015 Averages: The pool's Fitch DSCR and LTV are 1.18x and 106.1%, respectively. The leverage metrics for this transaction are in line with other

recent Fitch-rated, fixed-rate multiborrower transactions. The 2014 average Fitch DSCR was 1.19x, and the average Fitch LTV was 106.2%. The 2015 YTD DSCR and LTV averages are 1.21x and 109.3%, respectively.

Investment-Grade Credit Opinion Loans: Three loans totaling 15.1% of the pool have investment-grade credit opinions on a stand-alone basis. Lakewood Center Mall (8.6%) has an investment-grade opinion of 'A+sf', 40 Wall Street (4.3%) has an investment-grade opinion of 'BBB-sf' and Avco Center (2.2%) has an investment-grade opinion of 'BBB-sf'. Excluding the credit opinion loans, Fitch's implied conduit subordination at 'AAAsf' is approximately 27.0% and 'BBB-sf' is approximately 8.6%.

Strong Collateral Quality: As a percentage of Fitch inspected properties, 40.5% of the pool received a property quality grade of "B+" or higher. Three loans (5.1% of the pool) received property quality grades of 'A-' or higher. Only one inspected property (0.4%) received a property quality grade below 'B-'.

RATING SENSITIVITIES

For this transaction, Fitch's NCF was 18.25% below the most recent year's NOI (for properties for which a full year NOI was provided, excluding properties that were stabilizing during this period).The following rating sensitivities describe how the ratings would react to further NCF declines below Fitch's NCF. The implied rating sensitivities are only indicative of some of the potential outcomes and do not consider other risk factors to which the transaction is exposed. Stressing additional risk factors may result in different outcomes. Furthermore, the implied ratings, after the further NCF stresses are applied, are more akin to what the ratings would be at deal issuance had those further stressed NCFs been in place at that time.

Fitch evaluated the sensitivity of the ratings assigned to COMM 2015-CCRE24 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'Asf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'BBB+sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 10 - 11.

DUE DILIGENCE USAGE

Fitch was provided with third-party due diligence information from KPMG LLP. The third-party due diligence information was provided on Form ABS Due Diligence-15E and focused on a comparison and re-computation of certain characteristics with respect to each of the 81 mortgage loans. Fitch considered this information in its analysis and the findings did not have an impact on our analysis. A copy of the ABS Due Diligence Form-15E received by Fitch in connection with this transaction may be obtained through the link contained on the bottom of the related rating action commentary (RAC).

Additional information is available at www.fitchratings.com.

COMM 2015-CCRE24 Commercial Mortgage Trust

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868746

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 20 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862818

Criteria for Analyzing Multiborrower U.S. and Canadian Commercial Mortgage Transactions (pub. 28 May 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865499

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=988247

ABS Due Diligence Form 15E 1

https://www.fitchratings.com/creditdesk/press_releases/content/ridf15E_frame.cfm?pr_id=988247&flm_nm=15e_988247_1.pdf

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=988247

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Clement Okeke
Associate Director
+1-312-606-2323
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Andres Turegano
Analyst
+1-312-368-3332
or
Committee Chairperson
Robert Vrchota
Managing Director
+1-312-368-3336
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Clement Okeke
Associate Director
+1-312-606-2323
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Andres Turegano
Analyst
+1-312-368-3332
or
Committee Chairperson
Robert Vrchota
Managing Director
+1-312-368-3336
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com