DBRS Confirms Ratings of COMM 2016-CCRE28 Mortgage Trust, Stable Trends

DBRS Limited (DBRS) has today confirmed the ratings for all classes of Commercial Mortgage Pass-Through Certificates, Series 2016-CCRE28 (the Certificates) issued by COMM 2016-CCRE28 Mortgage Trust (the Trust) as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-HR at AAA (sf)
-- Class XP-A at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-HR at AAA (sf)
-- Class A-M at AAA (sf)
-- Class X-B at AAA (sf)
-- Class X-C at AAA (sf)
-- Class X-D at AAA (sf)
-- Class X-E at AAA (sf)
-- Class X-F at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (high) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (high) (sf)
-- Class G at BB (low) (sf)
-- Class H at B (low) (sf)

All trends are Stable. DBRS does not rate the first loss piece, Class J.

The rating confirmations reflect that the transaction’s current performance remains stable. The collateral consists of 49 fixed-rate loans secured by 119 commercial properties. As of the January 2017 remittance, all 49 loans remain in the pool, with an aggregate outstanding principal balance of approximately $1.02 billion, representing a collateral reduction of 0.3% since issuance as a result of scheduled loan amortization. The pool has a high concentration of loans secured by properties that are either fully or primarily leased to single tenants, as 13 loans (32.2% of the pool) are secured by properties leased in this manner; however, of the six loans (26.7% of the pool) in the Top 15, four loans (14.2% of the pool) are leased to investment-grade tenants (Netflix, Inc., FedEx, the City and County of San Francisco, and Apple Inc.). Pool-wide, 11 loans (40.6% of the pool) are structured with full interest-only (IO) terms, while an additional 23 loans (43.9% of the pool) have partial IO periods remaining, ranging from three months to 48 months. To date, 43 loans (80.2% of the pool) have reported partial-year 2016 net cash flow (NCF) figures. Based on these financials, the transaction had a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.57 times (x) and 8.9%, respectively, compared with the DBRS underwritten (UW) figures of 1.51x and 8.4%, respectively.

As of the January 2017 remittance, there are no loans in special servicing and one loan (1.0% of the pool) on the servicer’s watchlist. The Holiday Inn Corpus Christi Airport (Prospectus ID#32) is secured by a 237-key, limited-service hotel located in Corpus Christi, Texas. The loan was placed on the servicer’s watchlist in September 2016, as a result of deferred maintenance. The servicer has sent a letter of deferred maintenance to the property contact and requested an updated plan of remediation.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted and specially serviced loans, as well as for the largest 15 loans in the pool, in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

For more information on these rating actions, please contact us at 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 (January 2017) and CMBS North American Surveillance (December 2016), which can be found on our website under Methodologies.

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