DBRS Finalizes Provisional Ratings on Freddie Mac Structured Pass-Through Certificates, Series K-075

DBRS, Inc. (DBRS) finalized its provisional ratings on the following classes of Structured Pass-Through Certificates, Series K-075 (the SPCs) issued by Freddie Mac Structured Pass-Through Certificates, Series K-075:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X1 at AAA (sf)
-- Class XAM at AA (low) (sf)
-- Class A-M at A (high) (sf)

The trends are Stable.

Classes X2-A, X2-B, B, C and D have been privately placed.

Classes A-1, A-2, X1, XAM, A-M and X3 are being conveyed by Freddie Mac into the Freddie Mac Structured Pass-Through Certificates, Series K-075 Trust.

The X-1, X-AM, X2-A, X2-B and X-3 balances are notional. DBRS ratings on interest-only (IO) certificates address the likelihood of receiving interest based on the notional amount outstanding.

The SPCs represent a pass-through interest in certificates issued by FREMF 2018-K75 Mortgage Trust, Series 2018-K75. Please see the rating report for FREMF 2018-K75 Mortgage Trust, Series 2018-K75 for more information regarding the underlying certificates.

Freddie Mac guarantees the (1) timely payment of interest; (2) payment of related principal on the distribution date following the maturity date of each mortgage loan, to the extent such principal would have been distributed to the underlying Class A-1, A-2 and A-M certificates; (3) reimbursement of any realized losses and additional trust fund expenses allocated to the guaranteed certificates; and (4) ultimate payment of principal by the assumed final distribution date for the underlying Class A-1, A-2 and A-M certificates. Freddie Mac will not guarantee any other class of underlying certificates other than the underlying guaranteed certificates. All classes will be subject to ongoing surveillance, upgrades or downgrades by DBRS after the date of issuance. The ratings assigned by DBRS at issuance are based exclusively on the credit provided by the transaction structure and underlying assets of FREMF 2018-K75 Mortgage Trust, Series 2018-K75 without regard to the Freddie Mac Guarantee. DBRS may take the Freddie Mac Guarantee into consideration for future rating actions.

Classes X1 and XAM 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.

For more information on this transaction and supporting data, please log into www.viewpoint.dbrs.com. DBRS will continue to monitor this transaction with periodic updates provided in the DBRS Viewpoint platform.

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

The principal methodologies are North American CMBS Multi-borrower Rating Methodology, Rating North American CMBS Interest-Only Certificates and DBRS Commercial Real Estate Property Analysis Criteria, 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.

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

With regard to due diligence services, DBRS was provided with the Form ABS Due Diligence-15E (Form 15-E) which contains the description of the information that the third party reviewed in conducting the due diligence services and a summary of the findings and conclusions. While DBRS did not rely on the due diligence services outlined in Form 15-E, DBRS did use the Data File outlined in the Independent Accountant’s Report in its analysis to determine the ratings.

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

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.