DBRS Confirms All Classes of PFP III 2014-1, Ltd.

DBRS, Inc. (DBRS) has today confirmed the ratings of the Floating Rate Notes (the Notes) in PFP III 2014-1, Ltd. as follows:

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

The trend on all classes remains Stable.

The collateral consists of 20 floating-rate mortgage loans, 11 of which are pari passu participations with future funding components totaling $34.1 million as of April 2015. Four loans have repaid from the trust since issuance, including the second largest loan, 2305 Mission College Blvd. (Prospectus ID#), reducing collateral by 22.1% since the deal closed. The outstanding loans have an average remaining term of approximately 15 months.

DBRS has been in communication with the issuer and master and primary servicers regarding the monthly reporting of the collateral properties. The proceeds necessary to fulfill the future funding obligations have been drawn on primarily from a Committed Warehouse Line and are held outside the trust, but are pari passu with the trust participations. The future funding is generally used for property renovations and leasing costs associated with each individual property’s stabilization plan. The DBRS modeling approach for this pool included loan level probability of default based on in-place cash flows and loss severity based on stabilized cash flows. DBRS assumed the maximum loan commitments were funded in its modeling.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are 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 applicable methodologies are CMBS Rating Methodology, North American CMBS Surveillance Methodology and Unified Interest Rate Model for U.S. RMBS Transactions, which can be found on our website under Methodologies.

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