DBRS Upgrades One Class of DBRR 2012-EZ1 Trust

DBRS, Inc. (DBRS) has today upgraded the rating of the following class of DBRR 2012-EZ1 Trust, CMBS ReREMIC Certificates, Series 2012-EZ1. All trends are Stable.

-- Class C to A (high) (sf) from A (sf)

In addition, DBRS has also today confirmed the ratings on the remaining classes in the Trust. All trends are Stable.

The rating upgrade reflects the positive credit migration on the underlying U.S. commercial mortgage-backed securities (CMBS) assets attributed to amortization, increased defeasance, loan seasoning and increased credit enhancement because of successful loan repayments at maturity and recoveries on liquidated loans. As a result of this performance, the DBRR 2012-EZ1 capital structure has amortized 99.3% since issuance in September 2013.

This transaction is a resecuritization, originally collateralized by the beneficial interests in 32 senior CMBS pass-through certificates from underlying transactions that were issued in 2004. As of the September 2015 remittance report, the transaction is collateralized by two of the original 32 CMBS certificates. The DBRR 2012-EZ1 Trust resecuritization consists of a senior/subordinate pass-through sequential-pay structure.

DBRS analyzed each of the contributed certificates based on the performance of the underlying loans, the deal structures and the various parties to the transactions. DBRS modeled each transaction separately, applying various stresses, including haircuts to all net cash flow figures.

The ratings assigned to the Certificates by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. The Class X-2 and Class X-5 balances are notional. DBRS ratings on interest-only certificates address the likelihood of receiving interest based on the notional amount outstanding. DBRS considers the interest-only certificate’s position within the transaction payment waterfall when determining the appropriate rating.

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

The applicable methodologies are North American CMBS Rating Methodology (June 2015) and CMBS North American Surveillance (January 2015), which can be found on our website under Methodologies.