KBRA upgrades BAMLL 2015-ASTR CMBS ratings after asset performance improves

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KBRA upgrades BAMLL 2015-ASTR

Highlights

KBRA upgrades all outstanding BAMLL 2015-ASTR ratings after a July 2024 surveillance review cites improved leasing and asset performance.
Recent leasing activity and a KNCF of $21.8 million have reduced in-trust KLTV to 102.7% from 105.6%, though still above the 89.1% at securitization.
Class A and Class X-A are now rated AA+ (sf), Class B to A (sf), reflecting stronger credit support and lower perceived risk for CMBS investors.

Rating changes follow stronger leasing and surveillance review

As reported by Kroll Bond Rating Agency, all outstanding ratings for BAMLL 2015-ASTR are upgraded after a surveillance review finds the CMBS SASB transaction is performing better than at the last ratings change in July 2024. KBRA says the improvement is driven mainly by recent leasing activity, while the rating action also reflects the quality of the underlying asset and the experience of the loan sponsor.

The transaction is backed by a single, non-recourse, first lien mortgage loan secured by the borrower's leasehold interest in a 385,831 square foot Class-A office building in Manhattan, New York City. The sponsors of the borrower are Edward J. Minskoff Equities, Inc. and Edward J. Minskoff.

KBRA says its review uses information from the trustee and servicer and produces a KNCF of $21.8 million and a KBRA value of $266.3 million, or $690 per square foot. The in-trust KLTV is 102.7%, improving from 105.6% at the last review, though it remains above the 89.1% level recorded at securitization. KBRA maintains the loan's KPO of Perform.

Upgrades strengthen outlook for office-backed CMBS exposure

The ratings changes cover Class A to AA+ (sf) from AA- (sf), Class X-A to AA+ (sf) from AA- (sf), and Class B to A (sf) from A- (sf). The upgrades indicate improved credit support for investors exposed to the single-asset, single-borrower office transaction.

The action also adds to signs that selective leasing momentum and asset quality continue to shape credit performance in parts of the New York office market. For CMBS investors, the updated ratings suggest lower perceived risk in the transaction compared with KBRA's prior review, even as leverage remains elevated relative to the original securitization level.

Our earlier coverage of KBRA’s rating actions on BAMLL 2015-ASTR explained that the agency upgraded all outstanding classes after a surveillance review showed stronger performance versus the July 2024 review, driven largely by recent leasing gains. We also detailed the key loan metrics behind the move—including the updated KLTV and valuation—highlighting how asset quality and sponsor strength can support office-backed SASB CMBS credit even with leverage still elevated versus securitization.

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