DBRS Confirms All Classes of BBCMS Mortgage Trust 2017-C1

DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2017-C1 (the Certificates) issued by BBCMS Mortgage Trust 2017-C1:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class X-E at BB (high) (sf)
-- Class E at BB (sf)
-- Class X-F at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class X-G 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 generally in line with DBRS’s expectations since issuance. The collateral consists of 58 fixed-rate loans secured by 75 commercial and multifamily properties. Two of the loans in the pool are cross-collateralized and cross-defaulted and as such are treated like one loan in the DBRS analysis. As of the February 2018 remittance, there has been a collateral reduction of 0.4% since issuance with a current outstanding trust balance of $852.3 million.

The weighted-average (WA) DBRS Term Debt Service Coverage Ratio (DSCR) and WA DBRS Debt Yield for the pool at issuance were 1.60x and 9.0%, respectively. The largest 15 loans in the pool collectively represent 62.2% of the transaction balance. Based on the most recent financial reporting available, 13 of the top 15 loans are reporting updated cash flows with a WA net cash flow growth of 11.7% over the DBRS issuance figures, with a WA DSCR and current debt yield of 1.59x and 8.65%, respectively.

There are four loans on the servicer’s watchlist, representing 5.37% of the current pool balance. In general, the loans on the watchlist are being monitored for cash flow declines (based on an annualized year-to-date figure) or tenant rollover risk. For additional information on the watchlisted loans, please see the full commentary on the DBRS Viewpoint platform, for which information has been provided below.

Classes X-A, X-B, X-D, X-E, X-Fand X-G are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche adjusted upward by one notch if senior in the waterfall.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- The Summit Birmingham
-- Merrill Lynch Drive
-- State Farm Data Center
-- Dogwood Station
-- Holiday Inn Express & Suites – Jackson

For complimentary access to this content, please register for the DBRS Viewpoint platform at viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

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

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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 under Related Documents or by contacting us at info@dbrs.com.

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

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

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