DBRS Confirms All 15 Classes of Schooner Trust, Series 2007-8

DBRS has today confirmed the ratings of all 15 classes of Schooner Trust, Series 2007-8 Commercial Mortgage Pass-Through Certificates, Series 2007-8 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-J at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (high) (sf)
-- Class G at BB (sf)
-- Class H at BB (low) (sf)
-- Class J at B (high) (sf)
-- Class K at B (sf)
-- Class L at B (low) (sf)
-- Class XP at AAA (sf)
-- Class XC at AAA (sf)

All trends are Stable.

The rating confirmations reflect the performance of the loans remaining in the transaction and the increased credit enhancement resulting from a collateral reduction of approximately 20.0% since issuance. As of the September 2013 remittance report, 14 loans have paid out of the pool since issuance, leaving 54 loans remaining in the transaction. Overall pool performance remains stable as the largest 15 loans in the transaction have a weighted-average debt service coverage ratio and weighted-average debt yield remain stable at 1.46 times and 11.0%, respectively.

At issuance, DBRS shadow-rated one loan, representing 9.3% of the current pool balance, as investment grade. DBRS has today confirmed that the performance of this individual loan remains consistent with investment-grade loan characteristics.

There are currently three loans on the servicer’s watchlist, representing 4.4% of the 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 largest 15 loans in the pool, the three loans on the servicer’s watchlist and the shadow-rated loan, which comprise approximately 70.7% 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.

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