DBRS Confirms Ratings of RAIT 2014-FL2

DBRS, Inc. (DBRS) has today confirmed the ratings on the following classes of notes issued by RAIT 2014-FL2 Trust:

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

All trends are Stable. DBRS does not rate the first loss piece, Class D, or the notional classes, X-1 and X-2.

The rating confirmations reflect the stable performance of the pool since issuance in April 2014. The transaction currently consists of 17 interest-only, floating-rate loans secured by 31 traditional commercial real estate properties, including office, retail, industrial and multifamily. According to the April 2014 remittance, one loan has been repaid in full, resulting in collateral reduction of 2.7% since issuance. Based on the most recent financial reporting, the pool has a weighted-average debt yield of 8.0%.

There are currently no 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 North American CMBS Rating Methodology (March 2015) and CMBS North American Surveillance (January 2015), which can be found on our website under Methodologies.

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