DBRS Upgrades Eight, Confirms One and Discontinues One Class of Schooner Trust, Series 2007-7

DBRS Limited (DBRS) has today upgraded the following eight classes of the Commercial Mortgage Pass-Through Certificates, Series 2007-7 issued by Schooner Trust, Series 2007-7:

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

Additionally, DBRS has confirmed the rating on the following class:

-- Class XC at A (sf)

All trends are Stable. DBRS has also discontinued the rating on Class C as this class was fully repaid with the April 2017 remittance.

The rating upgrades reflect the transaction’s performance as well as the overall collateral reduction since issuance. The transaction has experienced a collateral reduction of 93.7% since issuance as a result of scheduled amortization and the successful repayment of loans. There are six loans remaining in the pool out of the original 72 loans as of the April 2017 remittance. All of the loans were originally scheduled to mature in late 2016 or early 2017; however, extensions were granted to the respective borrowers to finalize refinance plans. According to the servicer, all remaining loans are scheduled to mature by June 2017. The transaction is reporting a YE2015 weighted-average (WA) debt service coverage ratio of 1.46 times and a WA exit debt yield of 14.0%. DBRS will closely monitor the loan repayments scheduled for the coming months.

The ratings assigned to Class K and Class L materially deviates from the higher rating implied by the quantitative results. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative results that is a substantial component of a rating methodology; in this case, the assigned ratings that reflect the uncertain loan level event risk.

The rating assigned to Class XC materially deviates from the lower ratings implied by the quantitative results. Consideration was given for the actual loan, transaction and sector performance where a rating based on the lowest rated notional class may not reflected the observed risk.

For detailed information on the DBRS viewpoint with regard to the assets remaining, please see the loan-level commentary at ireports.dbrs.com.

Notes:
All figures are in Canadian 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.