DBRS Upgrades Two Classes, Confirms Three Classes of FREMF 2011-K15 Mortgage Trust, Series 2011-K15

DBRS Limited (DBRS) has today upgraded the following two ratings of Multifamily Mortgage Pass-Through Certificates, Series 2011-K15 issued by FREMF 2011-K15 Mortgage Trust, Series 2011-K15:

-- Class B to AA (sf) from AA (low) (sf)
-- Class X2 to AA (high) (sf) from AA (sf)

Additionally, DBRS has confirmed the following classes:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X1 at AAA (sf)

All trends remain Stable.

These rating actions reflect the overall strong performance of the transaction since issuance. The collateral for this transaction consists of 91 fixed-rate loans secured by 91 multifamily properties. As of the June 2017 remittance, there has been a collateral reduction of 8.9% since issuance with 90 of the original 91 loans remaining in the pool, totalling a current trust balance of $1,062 million. Since issuance, ten loans, representing 6.5% of the pool balance, have been fully defeased and one loan, representing 2.5% of the pool balance at issuance, has been paid in full.

Loans representing 89.3% of the current pool balance reported YE2016 cash flow figures. Those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.66 times (x) and 11.6%, respectively, compared with the DBRS WA DSCR and WA debt yield of 1.40x and 9.2%, respectively, at issuance. The largest 14 loans in the pool reported a WA DSCR and debt yield of 1.66x and 11.1%, respectively, compared with the YE2015 figures of 1.62x and 10.8%, respectively. These loans have exhibited a WA net cash flow growth of 25.4% over the DBRS issuance figures and 2.0% year over year.

As of the June 2017 remittance, there are six loans, representing 4.9% of the pool balance, on the servicer’s watchlist. Three loans are being monitored for occupancy-related issues and two loans are being monitored because of fire damage; however, insurance proceeds were received and repairs are in various stages of completion. The last loan is being monitored for non performance-related items limited to deferred maintenance. There are no loans in special servicing.
DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans and for the largest 15 loans in the pool in the DBRS CMBS 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 into 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.

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.