DBRS Confirms Jefferies Military Housing Trust, Series 2010-XLII

DBRS has today confirmed the following class of Jefferies Military Housing Trust, Series 2010-XLII, with a Stable trend.

-- Pass-Through Certificates, Series 2010-XLII, HUNTER Project Certificates Series 2010A at B (sf)

The securitization consists of one $90 million loan collateralized by the residual cash flow interests from 12 U.S. military housing projects located on 11 bases, along with the property management and asset management fees from eight of those 12 projects. The collateral also includes developer fees, developer overhead fees and residual interests from an additional 15 military housing projects. The loan was originated in October 2010 with a scheduled maturity in October 2030 and a final maturity date in October 2045. The trust loan is interest only for the first five years through October 2015.

The rating confirmation reflects the stable performance of the portfolio since issuance, with the debt service coverage ratios (DSCRs) for the underlying loan and the Series 2010A certificates on a monthly basis generally in line with projected figures as based on the DBRS analysis at issuance. According to the servicer, the DSCR at YE2013 was 2.63 times (x) on the whole loan and the interest coverage ratio on the Series 2010A certificates was 3.83x.

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

These ratings are 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 (November 2012), which can be found on our website under Methodologies.