DBRS Places Asset-Backed Notes Issued by Selkirk 2014-3A Under Review with Developing Implications

DBRS Limited (DBRS) has today placed all classes of asset-backed notes (the Certificates) issued by Selkirk 2014-3A Under Review with Developing Implications, as listed below:

-- Class A2 at AAA (sf), Under Review with Developing Implications
-- Class IO at AAA (sf), Under Review with Developing Implications
-- Class B at AA (low) (sf), Under Review with Developing Implications
-- Class C at A (low) (sf), Under Review with Developing Implications
-- Class D at BBB (low) (sf), Under Review with Developing Implications
-- Class E at BB (low) (sf), Under Review with Developing Implications
-- Class F at B (low) (sf), Under Review with Developing Implications

Class A2, IO, B, C, D, E and F are retained by AIG Asset Management (U.S.), LLC.

To date, updated financial reporting for the transaction has been limited as DBRS has only been able to obtain YE2014 financial information for four of the loans in the pool. The reporting for the remaining loans reflects the debt service coverage ratio and occupancy percentage from closing. While there has been some confusion regarding the reporting requirements for the transaction, DBRS has spoken with the Master Servicer and the Master Primary Servicer and expects to receive updated financial information for the balance of the loans in the pool shortly. DBRS expects to learn more about the overall pool performance and individual loan characteristics once the current data is made available by the Master Primary Servicer.

The underlying collateral consists of 61 seasoned, fixed-rate loans with an aggregate balance of $728.6 million. Since issuance in September 2014, one loan has prepaid from the trust. In addition to this prepayment, scheduled amortization on the remaining loans has contributed to a total collateral reduction of 3.4% as of the September 2015 remittance. The transaction is concentrated by market type and loan size as properties located in urban markets and the top ten loans represent 25.2% and 50.3% of the pool balance, respectively. As of the September 2015 remittance, there are no delinquent or specially serviced loans and there are no loans on the servicer’s watchlist.

DBRS continues to monitor this deal on a monthly basis. For more information on this rating action, please contact DBRS at info@dbrs.com.

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.

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.