DBRS Releases Report for Gallerie 2013 S.R.L.
CMBSOn 5 December 2014, DBRS, Inc. (DBRS) confirmed the ratings of the Commercial Mortgage Backed Floating-Rate Notes Due 2025 issued by Gallerie 2013 S.R.L.
Today, DBRS has released a surveillance report associated with the above-mentioned rating actions.
DBRS continues to monitor this transaction on a quarterly basis.
Notes:
The principal methodology applicable is: European CMBS Surveillance.
Other methodologies and criteria referenced in this transaction are listed at the end of this press release.
This can be found on www.dbrs.com at:
http://www.dbrs.com/about/methodologies
For a more detailed discussion of sovereign risk impact on Structured Finance ratings, please refer to DBRS commentary The Effect of Sovereign Risk on Securitisations in the Euro Area on: http://www.dbrs.com/industries/bucket/id/10036/name/commentaries/
The sources of information used for this rating include Goldman Sachs International, Gallerie 2013 S.R.L., Savills and the CREFC EIRP and all relevant documentation.
DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.
DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.
The last rating action on this transaction took place on December 5, 2014, when the ratings were confirmed.
Information regarding DBRS ratings, including definitions, policies and methodologies are available on www.dbrs.com.
To assess the impact of the changing the transaction parameters on the rating, DBRS considered the following stress scenarios, as compared to the parameters used to determine the rating (the Base Case):
A decrease of 10% and 20% in the DBRS Net Cash Flow (NCF), derived by looking at comparable properties, market rents, market occupancies in addition to expenses ratios, capital expenditures and re-tenanting costs, would lead to a downgrade in the transaction, as noted below for each class respectively:
Class A Notes Risk Sensitivity:
• 10% decline in DBRS NCF, expected rating of A (sf)
• 20% decline in DBRS NCF, expected rating of BBB (low) (sf)
Class B Notes Risk Sensitivity:
• 10% decline in DBRS NCF, expected rating of BBB (low) (sf)
• 20% decline in DBRS NCF, expected rating of BB (low) (sf)
Class C Notes Risk Sensitivity:
• 10% decline in DBRS NCF, expected rating of BB (low) (sf)
• 20% decline in DBRS NCF, expected rating of B (low) (sf)
For further information on DBRS historic default rates published by the European Securities and Markets Administration (ESMA) in a central repository, see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.
This credit rating has been issued outside the European Union (EU) and is endorsed by DBRS Ratings Limited. It may be used for regulatory purposes by financial institutions in the EU.
Initial Lead Analyst: Scott Goedken
Initial Rating Date: December 6, 2013
Initial Rating Committee Chair: Mary Jane Potthoff
DBRS, Inc.
101 North Wacker Drive, Suite 100
Chicago, IL 60606
USA
The rating methodologies and criteria used in the analysis of this transaction can be found at: http://www.dbrs.com/about/methodologies
European CMBS Surveillance
European CMBS Rating Methodology
Legal Criteria for European Structured Finance Transactions
Operational Risk Assessment for European Structured Finance Servicers
Derivatives Criteria for European Structured Finance Transactions
Unified Interest Rate Model for European Securitisations
For additional information on this rating, please see Linking Document: European CMBS under Related Research to the right or by contacting us at info@dbrs.com.