Fitch Ratings has affirmed six classes of Freddie Mac 2015-K45 (FREMF 2015-K45) multifamily mortgage pass-through certificates.

Fitch has also affirmed three classes of Freddie Mac structured pass-through certificates series K-045.

In addition, Fitch has affirmed unenhanced ratings for three classes of Freddie Mac 2015-K45 multifamily mortgage pass-through certificates and three classes of Freddie Mac Structured Pass-Through Certificates Series K-045.

RATING ACTIONS

ENTITY/DEBT	RATING		PRIOR

Freddie Mac Structured Pass-Through Certificates 2015-K045

A-1 3137BHX51

LT	AAAsf 	Affirmed		AAAsf

A-1 3137BHX51

ULT	AAAsf 	Affirmed		AAAsf

A-2 3137BHXJ1

LT	AAAsf 	Affirmed		AAAsf

A-2 3137BHXJ1

ULT	AAAsf 	Affirmed		AAAsf

X1 3137BHXK8

LT	AAAsf 	Affirmed		AAAsf

X1 3137BHXK8

ULT	AAAsf 	Affirmed		AAAsf

FREMF 2015-K45

A-1 30292PAL2

LT	AAAsf 	Affirmed		AAAsf

A-1 30292PAL2

ULT	AAAsf 	Affirmed		AAAsf

A-2 30292PAM0

LT	AAAsf 	Affirmed		AAAsf

A-2 30292PAM0

ULT	AAAsf 	Affirmed		AAAsf

B 30292PAE8

LT	BBB+sf 	Affirmed		BBB+sf

C 30292PAG3

LT	BBB-sf 	Affirmed		BBB-sf

X1 30292PAN8

LT	AAAsf 	Affirmed		AAAsf

X1 30292PAN8

ULT	AAAsf 	Affirmed		AAAsf

X2-A 30292PAA6

LT	AAAsf 	Affirmed		AAAsf

VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Freddie Mac Guarantee, Credit Linked Notes: The multifamily mortgage pass-through certificates (FREMF 2015-K45) classes A-1, A-2 and X1 are guaranteed by Freddie Mac. On August 3, 2020, Fitch affirmed Freddie Mac's rating at 'AAA' and revised the Outlook to Negative from Stable. This action followed Fitch's affirmation of the U.S. sovereign's 'AAA' Issuer Default Rating and revision of its Outlook to Negative from Stable on July 31, 2020.

The affirmation of classes A-1 and A-2 are based on the generally stable pool performance and loss expectations, and is also supported by the Freddie Mac guarantee. Although the interest-only class X1 is guaranteed, the long-term rating is based on the pass-through to the referenced A-1 and A-2 certificates. Although Freddie Mac does not guarantee the structured pass-through certificates (Freddie Mac K-045), they benefit indirectly from the guarantee of the FREMF 2015-K45 classes. The Freddie Mac K-045 classes represent a pass-through interest in the corresponding multifamily mortgage pass-through certificates issued by FREMF 2015-K45.

Stable Pool Performance and Loss Expectations: Fitch's unenhanced ratings are based on an analysis of the underlying collateral pool and do not give credit to the Freddie Mac guarantee. The majority of the pool has exhibited stable performance since the last rating action. There have been no delinquent or specially serviced loans since issuance. Fitch's current ratings incorporate a base case loss of 4.50%. There are four loans (10.18% of the pool) flagged as a Fitch Loan of Concern (FLOC), including the largest two loans in the pool.

FLOC: The View at Montgomery (5.39% of the pool) is secured by a 14-story student housing tower constructed in 2014 and located near Temple University in Philadelphia, PA and is the largest contributor to expected losses. Occupancy declined to 77% as of YE 2019 from 100% at YE 2018. The servicer reported financials dated September 2020 indicate that occupancy has rebounded to 96%; however, the servicer reported NOI DSCR declined to 0.92x for the twelve-month period ending September 2020 compared with 1.14x as of YE 2019, and 1.34x as of YE 2018.

Artessa at Quarry Village (3.73% of the pool), the second largest loan in the pool and the second largest contributor to expected losses, is secured by a 280-unit property comprised of two, four-story buildings plus a clubhouse and a leasing office built in 2009 and located in San Antonio, TX. According to the servicer, performance has declined due to the lowering of rental rates in order to retain occupancy during the coronavirus pandemic. While occupancy increased to 93% as of September 2020 compared with 90% at YE 2019, and 92% at YE 2018, servicer reported NOI DSCR declined to 0.75x for the 12-month period ending September 2020 compared with 2.09x at YE 2019, and 2.31x at YE 2018. Fitch applied additional stresses to these loans to capture the risk of additional performance declines in the future.

The remaining FLOCs are outside the Top 15 and account for less than 0.70% of the pool.

Increasing Credit Enhancement: As of the December 2020 remittance, the pool's aggregate principal balance has paid down by 3.4% to $1.52 billion from $1.58 billion at issuance. There are 17 non-defeased loans (29.3% of the pool) that are full-term, interest only. All 30 loans (56.4% of the pool) that had partial interest-only terms at issuance are now amortizing. There are 10 loans (12.2% of the pool) that are covered by fully defeased collateral, four (5.57% of the pool) of which have defeased since the last rating action. Twelve loans (18.5% of the pool) mature in 2024, and the remainder of the pool matures in 2025.

Coronavirus Exposure: Three non-defeased loans (7.87% of the pool) have executed forbearance agreements, all of which are scheduled to be paid back prior to YE 2021, due to the coronavirus pandemic. Four loans (12.5% of the pool) are secured by a student housing property and three loans (1.1% of the pool) are secured by senior living communities. Fitch considers these sub-sectors to be more volatile and/or require more operational experience than traditional multifamily assets; these sub-sectors are also expected to be more vulnerable to the coronavirus pandemic. Fitch's base case analysis applied additional NOI stresses to four multifamily loans given the potential for property-level cash flow declines in the short term as a result of the coronavirus pandemic. These additional stresses did not impact the ratings or Outlooks due to sufficient credit enhancement and improved pool performance.

RATING SENSITIVITIES

The Stable Rating Outlooks on the unenhanced ratings reflect stable pool performance.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Factors that could lead to upgrades on classes B and C include stable to improved asset performance coupled with additional paydown and/or defeasance. However, adverse selection and increased concentrations, or the underperformance of particular loans could cause this trend to reverse.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Factors that could lead to downgrades on the unenhanced ratings include an increase in pool level expected losses from underperforming or specially serviced loans. While a downgrade to class B & C is not expected, it is possible if loan performance declines significantly, loans face difficulty refinancing at maturity or properties vulnerable to the coronavirus do not return to pre-pandemic levels.

The unenhanced ratings represent a detachment from the guarantee provided by Freddie Mac for their respective classes. Should the performance of the underlying collateral deteriorate enough to warrant a downgrade to any of the classes benefitting from the Freddie Mac guarantee, only the unenhanced ratings would be downgraded. The long-term ratings for those classes that benefit from a guarantee would be rated at the higher of Freddie Mac or the underlying rating without the guarantee.

In addition to its baseline scenario related to the coronavirus, Fitch envisions a downside scenario where the health crisis is prolonged beyond 2021; should this scenario play out, Fitch expects negative rating actions including downgrades or Negative Rating Outlooks to both the long-term and unenhanced ratings.

For more information on Fitch's original rating sensitivity on the transaction, please refer to the presale report.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Freddie Mac Guarantee, Credit Linked Notes: The multifamily mortgage pass-through certificates (FREMF 2015-K45) classes A-1, A-2 and X1 are guaranteed by Freddie Mac. On August 3, 2020, Fitch affirmed Freddie Mac's rating at 'AAA' and revised the Outlook to Negative from Stable. This action followed Fitch's affirmation of the U.S. sovereign's 'AAA' Issuer Default Rating and revision of its Outlook to Negative from Stable on July 31, 2020.

The affirmation of classes A-1 and A-2 are based on the generally stable pool performance and loss expectations, and is also supported by the Freddie mac guarantee. Although the interest-only class X1 is guaranteed, the long-term rating is based on the pass-through to the referenced A-1 and A-2 certificates. Although Freddie Mac does not guarantee the structured pass-through certificates (Freddie Mac K-045), they benefit indirectly from the guarantee of the FREMF 2015-K45 classes. The Freddie Mac K-045 classes represent a pass-through interest in the corresponding multifamily mortgage pass-through certificates issued by FREMF 2015-K45.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Additional information is available on www.fitchratings.com

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