DBRS Places All Classes of Schooner Trust, Series 2006-6 Under Review with Developing Implications

DBRS, Inc. (DBRS) has today placed all classes of the Commercial Mortgage Pass-Through Certificates, Series 2006-6 issued by Schooner Trust, Series 2006-6 Under Review as follows:

-- Class XC at AAA (sf), Under Review with Developing Implications
-- Class H at BB (sf), Under Review with Developing Implications
-- Class J at BB (low) (sf), Under Review with Developing Implications
-- Class K at B (high) (sf), Under Review with Developing Implications
-- Class L at B (low) (sf), Under Review with Developing Implications

DBRS has placed all classes Under Review with Developing Implications due to the transfer to special servicing of the two remaining loans in the pool with the January 2017 remittance. The loans were transferred as the previously extended maturity dates have passed without repayment and the borrower has requested an additional 90 days to fulfill the repayment obligations. Although DBRS believes the remaining rated classes are well insulated, with the lowest-rated Class L benefiting from a credit enhancement level of 67.1% and an unrated class with a current balance just under $5.0 million, the uncertainty with regard to the workout status for these loans supports the rating actions taken today. Both of the remaining loans are secured by industrial properties located within close proximity of one another outside of Montréal, Québec.

For detailed information on the performance history and DBRS viewpoint with regard to these assets, please see the loan-level commentary for these loans at ireports.dbrs.com. As additional information is received from the servicer with regard to the status of these loans, DBRS will update the commentary on that platform and will conduct a full assessment of the transaction within the next 90 days.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 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.