Press Release
DBRS Confirms the Ratings of REALT 2007-1; Releases Surveillance Report
CMBSDBRS has today confirmed the ratings of REALT 2007-1 as follows:
-- Classes A-1, A-2, XP-1, XP-2, XC-1 and XC-2 at AAA
-- Class B at AA
-- Class C at A
-- Class D-1 and D-2 at BBB
-- Class E-1 and E-2 at BBB (low)
-- Class F at BB (high)
-- Class G at BB
-- Class H at BB (low)
-- Class J at B (high)
-- Class K at B
-- Class L at B (low)
All trends are Stable.
After approximately 39 months of seasoning, the underlying loans have exhibited stable performance, with the transaction's WADSCR increasing to 1.48x from 1.37x at issuance. All 76 loans from issuance remain in the pool and are current. The servicer's watchlist consists of four loans (2.9% of the pool), three of which have been added to the DBRS HotList. The pool is concentrated within the top ten loans, which represent 53.2% of the pool. This risk is mitigated by the fact that there are a total of 30 properties that collateralize the top ten loans. Additionally, DBRS has rated three of the top ten loans to be investment grade.
The DBRS analysis included an in-depth look at the top ten loans in the transaction, in addition to the loans on the servicer’s watchlist. Cumulatively, these loans represent 56.0% of the current pool balance. The confirmation of the 18 rated classes follows the modeling of various cash flow stress scenarios where stresses were applied across the entire transaction. As more loans continue to report YE2009 financials, DBRS has observed that the updated cash flows, on average, are more stable than the applied stresses.
For further detail and loan level analysis, please refer to the corresponding Surveillance report on www.dbrs.com
Note:
All figures are in Canadian dollars unless otherwise noted.
The applicable methodologies are CMBS Rating Methodology and CMBS Surveillance, which can be found on our website under Methodologies.
This is a Structured Finance CMBS rating.
Ratings
Real Estate Asset Liquidity Trust, Series 2007-1
ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.
Download This Press Release
Related Documents
Methodology Used:
Other:
Contacts
- Erin Stafford
Managing Director - North American Real Estate Ratings
+(1) 312 332 3291
erin.stafford@morningstar.com