DBRS Assigns Provisional Rating to Class BC of RAIT 2013-FL1 Trust

DBRS has today assigned a provisional rating of A (low) (sf) to the Class BC Combination Notes to be issued by RAIT 2013-FL1 Trust. In addition, based on the pre-pricing supplement, DBRS confirms that there is no impact to the provisional ratings assigned to the other classes in the transaction (as noted below) on July 22, 2013. All trends are Stable.

-- Class A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)

All classes have been privately placed pursuant to Rule 144A.

The pre-pricing supplement added the $12,850,000 million Class BC Combination Notes, which are effectively exchangeable notes that provide the noteholders with the option to exchange Class B notes and Class C notes for Class BC notes and vice versa. If exchanged, the Class BC noteholder will receive proportional payments that it otherwise would have received if separately owning the Class B notes and Class C notes.

Other changes in the pre-pricing supplement include the contemplated release of collateral for one of the initial loans, Vista Shops. The principal balance of Vista Shops has been reduced by $1.2 million to $10.3 million. The $1.2 million is now available for additional mortgage loans, increasing the original $63.0 million to $64.2 million. The increase in the dollar amount of loans that may be contributed 180 days post-closing is reflective of a 0.9% increase in the entire pool balance.

For additional information on DBRS analysis, please see the press release dated July 22, 2013, and the associated presale report. An updated rating report will be issued upon transaction closing.

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

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

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link to the right under Related Research, or by contacting us at info@dbrs.com.

The applicable methodologies are CMBS Rating Methodology and the Unified Interest Rate Model for U.S. and European Structured Credit, which can be found on our website under Methodologies.