DBRS Upgrades Ratings of RB Commercial Trust 2012-RS1

DBRS Limited (DBRS) upgraded the ratings of the RB Commercial Trust 2012-RS1 Asset-Backed Notes, Series 2012-RS1 (the Notes) issued by RB Commercial Trust 2012-RS1 as follows:

-- Class A to AA (low) (sf) from A (low) (sf)
-- Class B to BBB (high) (sf) from BBB (sf)

In addition, DBRS changed the trend on the Class A Notes to Positive from Stable. The trend for the Class B Notes is Stable.

The transaction is a resecuritization collateralized by the beneficial interests in seven commercial mortgage-backed pass-through certificates from three underlying transactions: FREMF 2011-K13 Mortgage Trust, Multifamily Mortgage Pass-Through Certificates Series 2011-K13; FREMF 2011-K15 Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2011-K15; and FREMF 2012-K18 Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2012-K18.

The ratings are dependent on the performance of the underlying transactions. The principal-only (PO) Class C and the interest-only (IO) Class X-2 were contributed from each respective transaction. Although DBRS does not publicly rate the FREMF 2011-K13 Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2011-K13 transaction, a detailed level of analysis was performed, using the CRE Finance Council Investor Reporting Package files from the latest remittance period.

The rating upgrades and positive trend assignment on the Class A Notes reflects the increased credit support to the underlying transactions and the generally strong performance of the collateral properties in each deal. As at the February 2018 remittance for the FREMF 2011-K13 transaction (not rated by DBRS), the pool has experienced a collateral reduction of 16.2% since issuance and benefits from defeasance collateral totaling 28.1% of the current pool balance. Please refer to the March 21, 2018, DBRS press releases for the FREMF 2012-K18 and FREMF 2011-K15 transactions for more information on the DBRS ratings for those deals.

DBRS analyzed the underlying certificates based on the performance of the underlying loans and the transaction structure. DBRS ratings recognize the likelihood that available funds may be less than the accrued interest on the Class A Notes over multiple periods. The resulting interest shortfall(s) will be added to the note balance of the Class A Notes.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

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.

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