DBRS Confirms Rating of DBRR 2013-EZ3, CMBS Re-REMIC Certificates, Series 2013-EZ3

DBRS, Inc. (DBRS) confirmed the rating on the following class of CMBS Re-REMIC Certificates (the Certificates) issued by DBRR 2013-EZ3, CMBS Re-REMIC Certificates, Series 2013-EZ3 (the Trust):

-- Class C at A (high) (sf)

The trend is Stable. DBRS has also discontinued the ratings of Classes B, X-1 and X-2 as these classes were repaid in full with the August 2017 remittance.

The rating confirmation reflects the stable performance of the underlying U.S. commercial mortgage-backed securities (CMBS) assets, which can be attributed to amortization, increased defeasance, loan seasoning and increased credit enhancement because of successful loan repayments at maturity and recoveries on liquidated loans. As a result of this performance, the Trust’s capital structure has amortized 99.9% since issuance in September 2013.

This transaction is a resecuritization, originally collateralized by the beneficial interests in 23 senior CMBS certificates from underlying transactions that were issued between 2004 and 2007. As of the August 2017 remittance, 22 contributing certificates have been repaid in full.

DBRS has analyzed the contributed certificate based on the performance of the underlying loans, the deal structure and the various parties to the transaction. DBRS analyzed the transaction, applying various stresses, including haircuts to all net cash flow figures.

The rating assigned to Class C differs materially deviate from the higher ratings 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. The deviations are warranted as the rating reflects structural features (loans or transactions) and/or provisions in other relevant methodologies that outweigh the quantitative model’s output.

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

The applicable methodology is CMBS North American Surveillance, which can be found on our website under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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