DBRS Confirms Ratings of RAIT 2013-FL1

DBRS has today confirmed the ratings on the following classes of notes issued by RAIT 2013-FL1 Trust:

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

All trends are Stable. Class BC notes are exchangeable with Class B notes and Class C notes and vice versa.

The rating confirmations reflect the stable performance of the pool since issuance in July 2013. The transaction currently consists of 14 interest-only, floating-rate loans secured by traditional commercial real estate properties, including office, retail, industrial and self-storage. At closing, the pool consisted of nine loans totaling $70.8 million, with eight additional loans, totaling $64.2 million, added to the pool in the following six months during the transaction’s ramp-up period. According to the July 2013 remittance, three of the original nine loans have been repaid in full and two additional loans have experienced partial principal prepayment due to the release of retail outparcels at their respective locations and the subsequent repayment of the allocated loan balances. As a result, there has been total collateral reduction of 19.4% since issuance.

There are currently no loans on the servicer’s watchlist or any delinquent or specially serviced loans. All the properties securing the loans are cash flowing assets; however, most properties are in a period of stabilization, with viable plans to improve asset value. Select loans were initially funded with reserves, which may have included funds for capital improvements, tenant inducements and leasing commissions and operating shortfalls. In both its initial transaction analysis and in this review, DBRS took into account the potential effects of the in-place reserves.

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

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.

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.