CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 17 classes of Morgan Stanley & Co. LLC's MSCI 2015-UBS8 Commercial Mortgage Pass-Through Certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral and no material changes to the pools metrics since issuance. As of the November 2016 distribution date, the pool's aggregate principal balance has been reduced by 0.5% to $800.9 million from $805 million at issuance. Currently, there is one specially serviced loan (0.7 %). No loans are defeased and all loans are current excluding the specially serviced loan. There is currently a $5,843 interest shortfall affecting class J related to special servicing fees and a small reimbursement for advance interest.
Stable Performance: Performance of the pool has been stable since issuance with only one loan (0.7% of the pool) delinquent and in special servicing.
High Retail Concentration: Approximately 43.2% of the loans in the pool are secured by retail properties. This includes six properties in the top 15 (24.2% of pool balance) that are collateralized at least in part by regional outlet centers or mall properties.
Sponsor Concentration: Four of the top 15 loans (18.6% of the pool) are secured by outlet malls that have a related sponsor in Simon Property Group. The parent of that group, Simon Property Group, Inc. is rated 'A'/Outlook Stable. The outlet centers reflect a weighted average DSCR and occupancy of 98.8% and 2.89x, respectively.
Limited Amortization: Approximately 11.3% of the original pool balance is scheduled to amortize prior to maturity. Eight loans totaling 29.3% of the original pool balance are full-term interest-only.
Low Issuance Fitch Leverage: At issuance, the pool reflected Fitch DSCR and LTV of 1.23x and 103.5%, respectively. This compares with 2015 Fitch average DSCR and LTV of 1.18x and 109.3%.
RATING SENSITIVITIES
The Rating Outlooks on all classes remain Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's overall portfolio-level metrics.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$28,621,831 class A-1 at 'AAAsf'; Outlook Stable;
--$6,300,000 class A-2 at 'AAAsf'; Outlook Stable;
--$51,500,000 class A-SB at 'AAAsf'; Outlook Stable;
--$160,000,000 class A-3 at 'AAAsf'; Outlook Stable;
--$313,000,000 class A-4 at 'AAAsf'; Outlook Stable;
--$563,500,000b class X-A at 'AAAsf'; Outlook Stable;
--$48,300,000 class A-S at 'AAAsf'; Outlook Stable;
--$53,331,000 class B at 'AA-sf'; Outlook Stable;
--$37,231,000 class C at 'A-sf'; Outlook Stable;
--$101,631,000ab class X-B at 'AA-sf'; Outlook Stable;
--$43,269,000ab class X-D at 'BBB-sf'; Outlook Stable;
--$18,700,000ab class X-F at 'BBsf'; Outlook Stable;
--$10,481,000ab class X-G at 'B-sf'; Outlook Stable;
--$25,156,000a class D at 'BBBsf'; Outlook Stable;
--$18,113,000a class E at 'BBB-sf'; Outlook Stable;
--$18,700,000a class F at 'BBsf'; Outlook Stable;
--$10,481,000a class G at 'B-sf'; Outlook Stable;
(a) Privately placed and pursuant to Rule 144A.
(b) Notional amount and interest-only.
Fitch does not rate class X-H, class X-J, class H or class J.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
https://www.fitchratings.com/site/re/886006
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)
https://www.fitchratings.com/site/re/882401
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
https://www.fitchratings.com/site/re/883130
North America and Asia-Pacific Multiborrower CMBS Surveillance Criteria (pub. 01 Dec 2016)
https://www.fitchratings.com/site/re/891159
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1015683
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1015683
Endorsement Policy
https://www.fitchratings.com/regulatory
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