DBRS Upgrades Six Classes and Confirms Six Classes of MSAT 2005-RR4

DBRS, Inc. (DBRS) has today upgraded the ratings of the following six classes of Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4, issued by Multi Security Asset Trust LP, Series 2005-RR4 (MSAT) as follows:

-- Class F to AAA (sf) from AA (high) (sf)
-- Class G to AAA (sf) from AA (low) (sf)
-- Class H to AA (sf) from A (sf)
-- Class J to A (sf) from BBB (high) (sf)
-- Class K to BBB (sf) from BBB (low) (sf)
-- Class L to BB (sf) from BB (low) (sf)

Additionally, DBRS has confirmed the ratings on the remaining classes in the transaction as follows:

-- Class D at AAA (sf)
-- Class E at AAA (sf)
-- Class X-1 at AAA (sf)
-- Class M at B (low) (sf)
-- Class N at CCC (sf)
-- Class O at C (sf)

All trends are Stable, except for Classes N and O, which do not have trends assigned.

The rating upgrades are a result of 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 as a result of successful loan repayments at maturity and recoveries on liquidated loans. This performance has resulted in significant collateral reduction to the MSAT 2005-RR4 capital structure. Since issuance in March 2005, the transaction has amortized by 80.3%. Of the 16 original underlying CMBS transactions that were contributing to the MSAT 2005-RR4 transaction, the contributing classes in 12 transactions have paid off in full and three of the remaining four underlying U.S. CMBS transactions are currently experiencing principal repayment.

While potential losses associated with the underlying U.S. CMBS specially serviced loans could reduce credit enhancement or affect the lowest-rated classes, the performance of the overall MSAT 2005-RR4 transaction has been strong. As of the March 2016 remittance report, the transaction has experienced realized losses of approximately $32.1 million; however, losses have been contained to the unrated Class P-2. The MSAT 2005-RR4 capital structure currently has $6.8 million of credit support below the lowest DBRS-rated class. With this surveillance review, DBRS anticipates losses associated with the underlying specially serviced loans to be contained to Class O, which DBRS rates C (sf).

A full report providing additional analytical detail on the contributing underlying U.S. CMBS transactions will be published shortly.

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

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 2015), which can be found on our website under Methodologies.

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

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