OREANDA-NEWS. Fitch Ratings has issued a presale report on Deutsche Bank Securities, Inc.'s COMM 2015-LC23 Mortgage Trust commercial mortgage pass-through certificates.

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

--$39,109,000 class A-1 'AAAsf'; Outlook Stable;
--$210,190,000 class A-2 'AAAsf'; Outlook Stable;
--$53,371,000 class A-SB 'AAAsf'; Outlook Stable;
--$125,000,000 class A-3 'AAAsf'; Outlook Stable;
--$244,968,000 class A-4 'AAAsf'; Outlook Stable;
--$733,896,000b class XP-A 'AAAsf'; Outlook Stable;
--$733,896,000b class XS-A 'AAAsf'; Outlook Stable;
--$61,258,000 class A-M 'AAAsf'; Outlook Stable;
--$51,649,000 class B 'AA-sf'; Outlook Stable;
--$43,241,000 class C 'A-sf'; Outlook Stable;
--$28,828,000a class D 'BBBsf'; Outlook Stable;
--$94,890,000ab class X-B 'A-sf'; Outlook Stable;
--$52,850,000ab class X-C 'BBB-sf'; Outlook Stable;
--$22,822,000ab class X-D 'BB-sf'; Outlook Stable;
--$24,022,000a class E 'BBB-sf'; Outlook Stable;
--$22,822,000a class F 'BB-sf'; Outlook Stable.
--$10,810,000a class G '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 Nov. 2, 2015. Fitch does not expect to rate the $22,822,000ab interest-only class X-E, $33,632,147ab interest-only class X-F, $12,012,000a class H or the $33,632,147a class J.

The certificates represent the beneficial ownership interest in the trust, primary assets of which are 62 loans secured by 120 commercial properties having an aggregate principal balance of approximately $960.9 million as of the cut-off date. The loans were contributed to the trust by German American Capital Corporation, Ladder Capital Finance LLC, Cantor Commercial Real Estate lending, L.P., and Jefferies LoanCore LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 64.2% of the properties by balance and asset summary reviews and cash flow analysis of 74.6% of the pool.

KEY RATING DRIVERS

High Fitch Leverage: The pool demonstrates high leverage statistics with a Fitch DSCR and LTV of 1.14x and 108.5%, respectively. The 2015 year to-date average Fitch DSCR and LTV are 1.19x and 109.4%, respectively. Excluding the credit assessed 11 Madison Avenue (7.2% of the pool) and 40 Wall Street (0.5% of the pool), the Fitch DSCR and LTV are 1.11x and 112.5%, respectively.

Investment-Grade Credit Opinion Loans: Two loans have investment-grade credit opinions: 11 Madison Avenue (7.2% of the pool), has an investment-grade credit opinion of 'A-sf' on a stand-alone basis. 40 Wall Street (0.5% of the pool), has an investment-grade credit opinion of 'BBB-sf' on a stand-alone basis. Excluding these two loans, Fitch's implied conduit subordination at the junior 'AAAsf' tranche is approximately 25.6%, and 'BBB-sf' is 8.9%.

Below Average Amortization: The pool is scheduled to amortize by 10% of the initial pool balance prior to maturity, slightly worse than the 2014 and YTD 2015 averages of 12.0% and 12.3%, respectively. Fourteen loans (38.7%) are full-term interest only and fifteen loans (21.8%) are partial interest only. The remaining 33 loans (39.4%) are amortizing balloon loans with terms of five to 10 years.

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 14.9% below the most recent year's net operating income (NOI; for properties for which a full year NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates.

Fitch evaluated the sensitivity of the ratings assigned to COMM 2015-LC23 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 junior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'BBB-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on page 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 62 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.