DBRS Confirms the Ratings of Solar Trust, Series 2001-1

DBRS has today confirmed the ratings of six classes of Solar Trust commercial mortgage pass-through certificates, Series 2001-1 and placed four classes on trend negative.

The following classes were confirmed and have a Stable trend:
Class A-2 at AAA
Class B at AAA
Class C at AAA
Class IO at AAA
Class D at A (high)
Class E at A

Classes F through J were also confirmed but placed on trend Negative.
Class F at BB (high)
Class G at BB
Class H at B
Class J at B (low)

DBRS does not rate the $3.6 million first loss piece, Class K.

The rating confirmations recognize the significant increase in credit enhancement caused by collateral reduction (amortization and loan maturities) of approximately 70% since issuance. Additionally, there are no delinquent or specially serviced loans.

There are six loans on the servicer’s watchlist, representing a combined 28.47% of the current pool balance. The ratings are constrained by the poor performance of a number of these loans and, correspondingly, DBRS has placed Negative trends on the four lowest rated classes. DBRS has placed six of these loans on the DBRS HotList for further review.

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 approximately 92.5% of the current pool balance. DBRS has run a cash flow stress of 20% across all the loans in the transaction and compared the DBRS required credit enhancement levels to the current increased credit enhancement levels and found the ratings confirmations to be appropriate.

DBRS will continue to monitor this transaction on a monthly basis and provide further detail on the transaction and the HotListed loans in the Global Monthly CMBS Surveillance Report.

Notes:
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.