DBRS Finalizes Ratings to IMSCI 2011-1

DBRS has today assigned final ratings to the following classes of Institutional Mortgage Securities Canada Inc., Series 2011-1. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (high) (sf)
-- Class E at BBB (sf)
-- Class X at AAA (sf)

The collateral for the transaction consists of 16 fixed-rate loans secured by 16 retail properties. The pool benefits from strong, experienced sponsorship as all of the underlying properties are owned by either RioCan REIT or Calloway REIT, and the proceeds for each loan loans are all floored at the respective sponsor ratings of BBB (high) and BBB. The 16 loans in the transaction have ten-year terms and amortize subject to a 30-year schedule. In addition, each individual loan has a full-recourse guarantee provided by the respective sponsor.

A cash flow underwriting review was completed by DBRS on every loan in the transaction which resulted in a DBRS weighted-average term DSCR and debt yield of 1.34x and 9.1%. The underlying collateral is located in five provinces with Canada’s two largest provinces, Ontario and Québec, representing the largest concentrations at 40.3% and 27.6%.

Note:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is CMBS Rating Methodology and Legal Criteria for Canadian Structured Finance, which can be found on our website under Methodologies.