DBRS Confirms Ratings of IMSCI, 2011-1

DBRS has today confirmed the ratings of Institutional Mortgage Securities Canada Inc., 2011-1 as follows:

-- 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)

All trends are Stable.

The collateral for the transaction consists of 16 fixed-rate loans secured by 16 retail properties across five provinces in Canada. Ontario and Québec represent the largest concentrations, with 40.3% and 27.6% of the pool, respectively. As of the February 2012 remittance report, the pool has a balance of $203,190,162, representing a collateral reduction of approximately 1.36% since issuance in February 2011. Overall, the loans in the pool have reported stable performance since issuance.

Based on the DBRS underwritten net cash flows, the pool has a weighted-average debt service coverage ratio of 1.34x and weighted-average term debt yield of 9.1%.

The pool benefits from strong and experienced sponsors as all of the underlying properties are owned by either RioCan REIT or Calloway REIT, which are rated BBB (high) and BBB, respectively, by DBRS. Additionally, each loan has a full-recourse guarantee provided by its respective sponsor.

The DBRS analysis included an in-depth review of all the loans in the transaction. As of the February 2012 remittance report, there are no loans on the servicer’s watchlist and there are no delinquent or specially serviced loans.

DBRS continues to monitor this transaction in our Monthly CMBS Surveillance Report, to assess any material changes at the bond level or the collateral level that may affect our ratings. The Monthly CMBS Surveillance Report also highlights any material updates in the loans on the servicer’s watchlist or any specially serviced loans.

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

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