DBRS Upgrades the Ratings of Four Classes and Confirms Two Others of N-45 First CMBS Issuer Corporation, Series 2002-1

DBRS has today upgraded the ratings of N-45 First CMBS Issuer Corporation, Series 2002-1 as follows:

-Class C to AAA (sf) from AA (sf)
-Class D to AA (sf) from A (sf)
-Class E to A (low) (sf) from BBB (sf)
-Class F to BB (sf) from B (high) (sf)

In addition, DBRS has confirmed the ratings of two Classes as follows:

-Class B at AAA (sf)
-Class IO at AAA (sf)

Since issuance, the transaction has experienced a collateral reduction of approximately 81.6% and the weighted-average debt service coverage ratio, as of the September 2011 cut-off, was 1.70x.

As of the September 2011 remittance report, there are two loans on the servicer’s watchlist, though neither of these loans are on the DBRS HotList. One loan is on the watchlist for its October 1, 2011 maturity date and DBRS is awaiting servicer confirmation of that loan’s pay off. Based on the loan’s 32.5% debt yield, the refinance probability is strong. The second loan on the watchlist has been flagged for a whole-loan DSCR below 1.10x; however, the trust loan has a healthy DSCR of 1.85x.

Since the last DBRS review in October 2010, the transaction has exhibited stable performance. The upgrades recognize the increased credit enhancement from the pay down of five loans since the last review, in addition to the continued amortization of the remaining loans in the pool.

DBRS continues to monitor this transaction on a monthly basis, with ongoing information being available in the Monthly CMBS Surveillance Report.

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

The applicable methodologies are CMBS Rating Methodology and North American CMBS Surveillance Methodology, which can be found on our website under Methodologies.