DBRS Upgrades 5 Classes of Schooner Trust, Series 2006-6, Confirms Remaining

DBRS has today upgraded the ratings of five classes of Schooner Trust Commercial Mortgage Pass-Through Certificates, Series 2006-6, as follows:

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

Additionally, DBRS has confirmed the ratings on the remaining classes in the transaction. All trends are Stable.

The rating upgrades reflect the increased credit enhancement to the bonds from a collateral reduction of approximately 28.4% since issuance. As of the September 2013 remittance, 22 loans have paid out of the pool since issuance, leaving 98 loans remaining in the transaction. The transaction also benefits from defeasance collateral as six loans, representing 8.6% of the current pool balance, are fully defeased. Overall pool performance remains stable as the largest 15 loans in the transaction, excluding defeasance collateral, have a weighted-average debt service coverage ratio and weighted-average debt yield of 1.54 times and 12.6%, respectively.
There are currently ten loans on the servicer’s watchlist, representing 10.4% of the current pool balance. The DBRS analysis considered that a few of these loans have an elevated probability of default as a result of these performance issues. There are no loans in special servicing.

As part of its review, DBRS analyzed the top 15 loans and the loans on the servicer’s watchlist, which comprise approximately 58.6% of the current pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool, specially serviced loans and loans on the servicer’s watchlist. The September 2013 Monthly CMBS Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
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 Methodology (November 2012), which can be found on our website under Methodologies.