DBRS Confirms All Classes of JPMDB Commercial Mortgage Securities Trust 2017-C7

DBRS Limited (DBRS) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2017-C7 issued by JPMDB Commercial Mortgage Securities Trust 2017-C7 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 (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-RR at BB (low) (sf)
-- Class F-RR 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 41 loans secured by 201 commercial and multifamily properties. As of the August 2018 remittance, the pool had an aggregate principal balance of approximately $1,101.3 million, representing a collateral reduction of 0.3% since issuance due to scheduled loan amortization. To date, 44.0% of the pool has reported year-end 2017 financials. Based on these financials, those loans had net cash flow (NCF) growth ranging between 0.8% and 31.9% over the DBRS NCF figures derived at issuance. The pool had a DBRS weighted-average (WA) debt service coverage ratio (DSCR) and debt yield at issuance of 2.17 times (x) and 10.2%, respectively.

At issuance, three loans, representing 14.9% of the current pool balance, were shadow-rated investment grade. DBRS confirmed that the performance of three of these loans, Moffett Place Building 4 (Prospectus ID#1, 6.3% of the pool), Gateway Net Lease Portfolio (Prospectus ID#8, 4.5% of the pool) and General Motors Building (Prospectus ID#10, 4.1% of the pool), remain consistent with investment-grade loan characteristics. The 245 Park Avenue loan (Prospectus ID#15, 2.9% of the pool) was shadow-rated below investment grade at issuance; however, due to DBRS’s concerns with the sponsor’s efforts to sell the property amid mounting debt, the shadow rating has been removed. For additional information on these loans, please see the DBRS Viewpoint platform, for which information has been provided below.

Classes X-A, X-B and X-D are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation 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:
-- Moffett Place Place Building 4 (Prospectus ID#1, 6.3% of pool)
-- Gateway Net Lease Portfolio (Prospectus ID#8, 4.5% of the pool)
-- General Motors Building (Prospectus ID#10, 4.1% of the pool)
-- 245 Park Avenue (Prospectus ID#15, 2.9% of the pool)

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 securities (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.

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.