DBRS Upgrades Four Classes of Mansfield Trust 2001-1

Dominion Bond Rating Service (“DBRS”) has today upgraded the ratings of four classes of Mansfield Trust Commercial Mortgage Pass-Through Certificates, Series 2001-1 as follows: Class B to AAA from AA (high), Class C to AA from AA (low), Class D to A (low) from BBB (high), and Class E to BBB (low) from BB (high). In addition, four classes were confirmed, Classes A-1, A-2, and X at AAA and Class F at B (high). The trends are Stable. The upgrades reflect the improved credit enhancement within the transaction due to loan refinancings and amortization.

The transaction consists of 69 commercial mortgage loans that have a weighted average debt service coverage ratio (DSCR) of 1.55 times (x). The pool remains diverse in terms of loan size, with the largest ten loans comprising 25% of the pool. Eight loans (8%) have been fully defeased with Government of Canada securities. The loans are concentrated by location, with 47.5% located within the province of Ontario. In addition, there are no loans on the DBRS HotList.

The weighted average loan coupon is 8.38%, which is higher than current rates in the market. The average remaining term is five years. One loan is currently below 1.0x, 3500 Laird Road secured by an industrial property located in Mississauga, Ontario. DBRS did not consider this a HotList loan because the borrower recently executed a lease renewal with the largest tenant and has leased up additional vacant space, bringing occupancy to 75%. The future cash flow is expected to result in a DSCR above 1.0x.