DBRS Confirms Rating of Selkirk No. 3

DBRS Limited (DBRS) has today confirmed the rating on the following class of Selkirk No. 3 Trust Commercial Pass-Through Certificates (the Certificates) issued by Selkirk No. 3, as listed below:

-- Class A at AAA (sf)

The trend is stable. Class A is privately placed pursuant to Rule 144A.

The rating confirmation reflects the strong credit enhancement of the above-noted class as subordination has continued to increase to the bonds with no delinquent or watchlisted loans in the pool as of the September 2015 remittance. 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 loans in special servicing.

DBRS continues to monitor this deal on a monthly basis. For more information on this rating action, please contact us 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.