DBRS Upgrades Two Classes and Confirms 13 Classes in MSAT 2005-RR4

The corresponding description of the action dated December 28, 2011, on Class G was updated to “Downgraded” from “Confirmed.” The rating itself has not changed and the rating history also remains the same.

DBRS has today upgraded the ratings of the following two classes of Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4 issued by Multiple Security Asset Trust LP, Series 2005-RR4 (MSAT) as follows:

– Class B to AAA (sf) from AA (sf)
– Class C to AA (high) (sf) from AA (low) (sf)

In additional, DBRS has confirmed the ratings of the 13 classes in the transaction as follows:

– Class A-3 at AAA (sf)
– Class X-1 at AAA (sf)
– Class D at “A” (sf)
– Class E at A (low) (sf)
– Class F at BBB (high) (sf)
– Class G at BBB (low) (sf)
– Class H at BBB (low) (sf)
– Class J at BB (sf)
– Class K at B
– Class L at CCC (sf)
– Class M at CCC (sf)
– Class N at CCC (sf)
– Class O at C (sf)

All trends are Stable, except for Class L, Class M, Class N and Class O, which do not have trends assigned.

The upgrades are a result of positive credit migration on the underlying U.S. commercial mortgage-backed securities (CMBS) assets, attributed to increased defeasance, loan seasoning, amortization and increased credit enhancement as a result of successful loan repayments at maturity and recoveries on liquidated loans. This performance in the underlying U.S. CMBS has resulted in significant principal repayment to the top of the MSAT 2005-RR4 capital structure. Since issuance, five transactions that were contributed to the MSAT 2005-RR4 transaction have paid off in full. Five of the remaining nine underlying U.S.CMBS transactions are currently experiencing principal repayment.

While potential losses associated with the underlying U.S. CMBS specially serviced loans could reduce credit enhancement or affect the lowest-rated classes, the performance of the overall transaction has been strong. Since the issuance of the MSAT 2005-RR4 transaction, Class A-1, Class A-2 and Class X-2 have repaid, and the $3.9 million of realized losses has been contained to the unrated Class P-6. The MSAT 2005-RR4 capital structure currently has $35 million of credit support below the lowest DBRS-rated class. With this surveillance review, DBRS does not anticipate losses associated with the underlying specially serviced loans to affect the DBRS-rated classes in the MSAT 2005-RR4 transaction.

Notes:
All figures are in U.S. dollars unless otherwise noted.

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

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.