DBRS Removes Three Classes from Under Review with Positive Implications, Upgrades Two and Confirms One in N-45 First CMBS Issuer Corporation, Series 2002-1

DBRS has today upgraded the following classes of the Commercial Mortgage Backed Bonds, Series 2002-1 of N-45 First CMBS Issuer Corporation, Series 2002-1:

-- Class E to AAA (sf) from A (low) (sf)
-- Class F to BBB (low) (sf) from BB (sf)

DBRS has confirmed the rating of Class IO at AAA (sf). In addition, DBRS has discontinued the ratings of Classes C and D, as they were fully repaid with the October 2012 remittance. The trend for all outstanding classes is Stable.

As part of this rating action, DBRS removed Classes D, E and F from Under Review with Positive Implications, where they were placed on October 1, 2012.

The rating actions follow the prepayment of one loan with the October 2012 remittance. Maison Trust Royal was previously the largest loan in the pool, with an outstanding balance of $24.8 million at the time of prepayment. This loan was scheduled to mature in May 2013 and did not incur any interest shortfall to the outstanding classes.

The remaining loan in this transaction is Complexe Raycom, with an outstanding balance of $13.5 million. This loan is scheduled to mature on December 1, 2012. The subject is a Class A suburban office property located approximately seven kilometres north of the Montréal central business district (CBD). There are two additional, subordinate loans associated with this property, and the whole loan debt service coverage ratio (DSCR) for YE2011 was reported to be 1.37 times (x), which is below the 1.40x servicer threshold. As a result of this, this loan is on the servicer’s watchlist. The DSCR for the trust loan only was reported to be 2.47x at YE2011. This loan has exhibited stable performance since issuance, and as of the October 2012 remittance, has a debt yield in excess of 34%. DBRS considers this loan to be a good candidate for refinance.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance (May 2011), which can be found on our website under Methodologies.