DBRS Confirms All Classes of Wells Fargo Commercial Mortgage Trust 2017-RB1

DBRS Limited (DBRS) confirmed all classes of the Commercial Mortgage Pass-Through Certificates, Series 2017-RB1 issued by Wells Fargo Commercial Mortgage Trust 2017-RB1 as follows:

-- 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-5 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class X-B at A (sf)
-- Class C at A (low) (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class E-1 at BB (sf)
-- Class E at BB (low) (sf)
-- Class E-2 at BB (low) (sf)
-- Class F-1 at B (high) (sf)
-- Class EF at B (sf)
-- Class F at B (sf)
-- Class F-2 at B (sf)
-- Class EFG at B (low) (sf)
-- Class G at B (low) (sf)
-- Class G-1 at B (low) (sf)
-- Class G-2 at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The collateral consists of 37 fixed-rate loans secured by 72 commercial properties. As of the March 2018 remittance, there has been a collateral reduction of 0.2% as a result of scheduled loan amortization. Thirteen loans, representing 52.4% of the pool balance, are structured with full-term interest-only (IO) payments. An additional 12 loans, representing 33.2% of the pool, have partial IO payments remaining, with four of those loans (7.3% of the pool) scheduled to begin amortizing in the next year. Loans representing 66.5% of the current pool balance reported partial YE2017 financials and reported a weighted-average (WA) debt service coverage ratio (DSCR) and debt yield of 1.68 times (x) and 8.8%, respectively. The DBRS Term DSCR and DBRS Debt Yield are 1.63x and 8.7%, respectively, or 1.58x and 8.6%, respectively, when excluding shadow-rated loans. Based on the most recent net cash flow (NCF) reporting available for the top 15 loans, representing 73.0% of the pool balance, the WA DSCR and WA Debt Yield are 1.68x and 8.6%, respectively, representing a WA cash flow improvement of 0.8% over the DBRS NCF figures derived at issuance. As of the March 2018 remittance, there were no loans on the servicer’s watchlist and in special servicing.

At issuance, DBRS assigned an investment-grade shadow rating on one loan, Merrill Lynch Drive (Prospectus ID#13; 3.3% of the pool balance). DBRS confirmed that the performance of this loan remains consistent with investment-grade loan characteristics.

Classes X-A, X-B and X-D are 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.

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

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:

-- Prospectus ID#11 – The Summit Birmingham
-- Prospectus ID#13 – Merrill Lynch Drive

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire commercial mortgage-backed security 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.