DBRS Confirms All Classes of A10 Permanent Asset Financing 2017-II, LLC

DBRS Limited (DBRS) confirmed the following classes of A10 Permanent Asset Financing 2017-II, LLC:

-- Class A Notes at AAA (sf)
-- Class B Notes at A (low) (sf)
-- Class C Notes at BBB (low) (sf)

All trends are Stable.

To confirm the ratings, DBRS analyzed the loans contributed to date and constructed a worst-case pool based on concentration limits and eligibility requirements as defined in the trust indenture relating to the minimum subordination requirements. As of the June 2018 remittance, the trust had 20 loans contributed to date with an aggregate principal balance of approximatly $116.1 million. The ratings assigned by DBRS contemplate timely payments of distributable interest and ultimate payment of principal by the legal final maturity in June 2051.

The rating assigned to Class B materially deviates from the higher rating 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 given the structural features outweigh the quantitative output as the transaction is in its initial funding period.

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.

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