DBRS Confirms Ratings on DBJPM 2016-C1 Mortgage Trust

DBRS Limited (DBRS) has today confirmed ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2016-C1 (the Certificates) issued by DBJPM 2016-C1 Mortgage Trust:

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

All trends are stable.

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The transaction consists of 33 fixed-rate loans secured by 45 commercial properties for a total trust balance of approximately $818.0 million. As of the April 2017 remittance report, the trust balance was $814.8, representing collateral reduction of 0.4% from issuance as a result of scheduled amortization. All of the original loans remain in the pool. As of the April 2017 remittance report, loans representing 29.1% of the pool are reporting YE2016 figures and loans representing 51.3% of the pool are reporting partial YE2016 figures. Based on the updated reporting, the pool has a weighted-average debt service coverage ratio of 1.77 times.

As of the April 2017 remittance report, there are two loans, representing 5.3% of the pool, including one loan in the top ten, on the servicer’s watchlist. There are no loans in special servicing. One of the loans is on the watchlist for reporting deferred maintenance issues during the most recent site inspection while the other loan is on the watchlist for reporting a low YE2016 net cash flow figure; however, this figure is expected to increase going forward as the decrease is caused by rental abatement periods for newly signed tenants, for which funds were reserved at issuance. The rental abatement periods are scheduled to expire throughout 2017.

At issuance, DBRS shadow-rated two loans, 787 Seventh Avenue (Prospectus ID #1; 9.8% of the pool) and 225 Liberty Street (Prospectus ID #5; 5.0% of the pool), as investment-grade. DBRS has today confirmed that the performance of these loans remains consistent with investment-grade characteristics.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted 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.

The ratings assigned to Classes E and F differ from the higher rating implied by the Large Pool Multi-borrower Parameters. DBRS considers this difference to be a material deviation from the methodology and, in this case, the ratings reflect the sustainability of loan performance trends not demonstrated.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.