DBRS Places All Classes of RAIT 2014-FL3 Under Review with Developing Implications

DBRS, Inc. (DBRS) has today placed all classes of secured floating-rate notes issued by RAIT 2014-FL3 Under Review with Developing Implications, as listed below:

-- Class A at AAA (sf), Under Review with Developing Implications
-- Class A-S 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 (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 X-1 at BB (low) (sf), Under Review with Developing Implications
-- Class X-2 at BB (low) (sf), Under Review with Developing Implications

To date, DBRS has not been able to obtain updated financial reporting for the remaining loans within the transaction. DBRS has spoken with the 17g5 Information Provider, which is expected to provide updated financial information for the remaining loans in the pool shortly. DBRS expects to learn more regarding the overall pool performance and individual loan characteristics once the current data is made available by the 17g5 Information Provider.

The underlying collateral consists of 21 interest-only, floating-rate loans with an aggregate balance of $215.2 million. Since issuance in October 2014, one loan has prepaid from the trust, resulting in collateral amortization of 1.9%. The loans are secured by stabilizing commercial real estate assets, which are currently cash flowing; however, each property is in a period of transition with individual stabilization plans to increase value. Six loans have future funding components totaling $15.8 million, which will allow the individual borrowers to increase leverage to fund value-add opportunities such as tenant inducement and leasing commission packages for new and renewal tenants as well as capital expenditure projects. Based on October 2015 reporting, all loans are current, and there are no loans in special servicing or on the servicer’s watchlist.

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.

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.