DBRS Assigns Provisional Ratings to A10 Term Asset Financing 2015-1, LLC

DBRS, Inc. (DBRS) has today assigned provisional ratings to the following Commercial Mortgage Pass-Through Certificates, Series 2015-1 (the Notes) issued by A10 Term Asset Financing 2015-1, LLC. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class B at A (sf)
-- Class C at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

Class E and Class F are non-offered classes.

The collateral consists of 31 loans secured by commercial real estate, all originated by A10 Capital, LLC (A10 Capital). A10 Capital specializes in mini-perm loans, which typically have two- to five-year terms and are used to finance properties until they are fully stabilized. The borrowers are often new equity sponsors of fairly well-positioned assets within their respective markets. A10 Capital’s initial advance is the senior debt component typically for the purchase of a real estate owned acquisition or discounted payoff. Most loans are structured with three-year terms and include built-in extensions at the lender’s sole discretion.

The pool was analyzed to determine the indicative ratings, reflecting the probability of loan default within the term, including the lender extension options, and its liquidity at maturity.

The ratings assigned by DBRS contemplate timely payments of distributable interest and, in the case of senior subordinate notes other than the Class A-1 and A-2 Notes, ultimate recovery of Deferred Collateralized Note Interest Amounts (inclusive of interest payable thereon at the applicable rate, to the extent permitted by law). Accordingly, DBRS will assign its Interest in Arrears designation to any class of Offered Notes (other than the Class A Notes) during any Interest Accrual Period when such class accrues Deferred Collateralized Note Interest Amounts.

The ratings assigned to the Notes by DBRS are based exclusively on the support provided by the transaction structure and the credit underlying trust assets. All classes will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

For more information, please refer to the DBRS presale report on the DBRS web site.

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

The applicable methodologies are CMBS Rating Methodology and Unified Interest Rate Model for U.S. RMBS Transaction, which can be found on our website under Methodologies.

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

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The full report providing additional analytical detail is available by clicking on the link below or by contacting us at info@dbrs.com.