DBRS Confirms All Classes of Real Estate Asset Liquidity Trust, Series 2007-1

DBRS Limited (DBRS) has today confirmed all classes of the Commercial Mortgage Pass-Through Certificates, Series 2007-1 issued by Real Estate Asset Liquidity Trust, Series 2007-1 as follows:

-- Class XC-1 at A (sf)
-- Class XC-2 at A (sf)
-- Classes D-1 at BBB (sf)
-- Classes D-2 at BBB (sf)
-- Classes E-1 at BBB (low) (sf)
-- Classes E-2 at BBB (low) (sf)
-- Class F at BB (high) (sf)
-- Class G at BB (sf)
-- Class H at BB (low) (sf)
-- Class J at B (high) (sf)
-- Class K at B (sf)
-- Class L at B (low) (sf)

All trends are Stable.

These rating actions are reflective of updated information received by DBRS with regard to the largest loan, Sundance Pooled Interest (Prospectus ID #5; 82.1% of the current pool balance). The information received resolves the uncertainty surrounding that loan and supports the confirmation of all outstanding classes with Stable trends.

As of the June 2017 remittance, three loans remain in the pool with an outstanding trust balance of $27.5 million, representing a collateral reduction of 94.7% since issuance. The Yonge Davisville Commercial loan (Prospectus ID#46; 6.7% of the current pool balance) was granted a short-term maturity extension to June 2017 to allow the borrower time to finalize replacement financing. While the loan remains in the transaction post the extended maturity date, it is expected to pay in full in the near term. The Compass Centre One loan (Prospectus ID#30; 11.2% of the current pool balance) is scheduled to mature in April 2018.

The ratings assigned to Classes D-1 through 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 ratings assigned to Classes XC-1 and XC-2 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.

DBRS has provided updated loan-level commentary and analysis for pivotal and noteworthy loans in the pool in the DBRS commercial mortgage-backed securities IReports platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or log in at www.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 methodology is CMBS North American Surveillance (March 2017), which can be found on dbrs.com under Methodologies.

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