DBRS Confirms Ratings on RAIT 2015-FL5 Trust

DBRS, Inc. (DBRS) has today confirmed the ratings on the following classes of Floating Rate Notes issued by RAIT 2015-FL5 Trust:

-- Class A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

All trends are Stable. DBRS does not rate the first loss piece, Class G, or the notional Class X.

The rating confirmations reflect the stable performance of the pool since issuance in December 2015. The transaction currently consists of 30 interest-only, floating-rate loans secured by 34 traditional commercial real estate properties, including office, retail, industrial and multifamily. According to the November 2016 remittance, one loan has been repaid in full and another has been partially paid down after a portion of the collateral was released. As a result, there has been collateral reduction of 6.1% since issuance. Based on the most recent net operating income reporting for the individual loans (Q2 or Q3 2016), the pool has a weighted-average debt yield of 9.3%.

There are currently no loans on the servicer’s watchlist or any delinquent or specially serviced loans. All the properties securing the loans are cash flowing assets; however, most properties are in a period of stabilization with viable plans to improve asset value. Select loans were initially funded with reserves, which may have included funds for capital improvements, tenant inducements, leasing commissions and operating shortfalls. In both its initial transaction analysis and in this review, DBRS took into account the potential effects of the in-place reserves.

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 (October 2016), which can be found on our website under Methodologies.

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.