DBRS Confirms Ratings of Institutional Mortgage Securities Canada Inc., 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 December 2013 remittance report, the pool has a balance of approximately $197.63 million, representing a collateral reduction of 4.07% since issuance. Overall, the loans continue to report stable performance. Based on YE 2012 net cash flows, the pool has a weighted-average debt service coverage ratio of 1.55 times (x) and a weighted-average term debt yield of 10.9%.

The pool benefits from strong and experienced sponsors as all of the underlying properties are owned by either RioCan Real Estate Investment Trust or Calloway Real Estate Investment Trust, 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 December 2013 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 its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool. The December 2013 Monthly 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 America Surveillance Methodology (November 2012), which can be found on our website under Methodologies.