DBRS Publishes Updated North American CMBS Methodologies

DBRS, Inc. (DBRS) published its updated “North American Single-Asset/Single-Borrower Methodology,” “North American CMBS Multi-borrower Rating Methodology” and “North American CMBS Surveillance Methodology” (the Methodologies). These updated Methodologies, effective September 27, 2018, replace the prior versions published in January, April and March 2018, respectively. The publication follows the conclusion of the Request for Comment period, which began on June 14, 2018. No comments were received during the Request for Comment period.

The updated Methodologies reflect the reclassification of the DBRS North American CMBS Multi-borrower Parameters and DBRS North American Direct Sizing Hurdles (Parameters/Hurdles) from predictive models to analytical tools (the North American CMBS Multi-borrower Analytical Tool and North American Sizing Hurdles Analytical Tool). An analytical tool generally acts as a usability tool to facilitate the rating process, and its outputs are ultimately used as a component to support the analysis conducted to determine a rating.

As indicated in the Request for Comment press release, classes of debt rated by DBRS that previously included material deviations from the Parameters/Hurdles over the past year (as of the most recent rating action) within the North American CMBS sector are listed below. Classes not included in the list comprise classes of debt that have subsequently paid in full or no longer had a material deviation as of the most recent rating action. Going forward, assigned ratings may continue to differ from the stresses implied by the North American CMBS Multi-borrower Analytical Tool and North American Sizing Hurdles Analytical Tool in the rated transactions listed below or in other North American CMBS ratings assigned by DBRS. These differences will be disclosed in accordance with applicable regulatory requirements.

-- COMM 2014-LC17 Mortgage Trust, Class F
-- GS Mortgage Securities Trust, Series 2011-GC3, Class E
-- GS Mortgage Securities Trust, Series 2011-GC3, Class F
-- ML-CFC Commercial Mortgage Trust, Series 2006-1, Class B
-- GS Mortgage Securities Trust, 2010-C1, Class B
-- GS Mortgage Securities Trust, 2010-C1, Class C
-- GS Mortgage Securities Trust, 2010-C1, Class D
-- Wachovia Bank Commercial Mortgage Trust, Series 2004-C15, Class F
-- JPMCC Commercial Mortgage Securities Trust 2017-JP7, Class G-RR
-- COMM 2004-LNB2, Class K
-- Morgan Stanley Capital I Trust, Series 2007-IQ16, Class A-J
-- Morgan Stanley Capital I Trust, Series 2007-IQ16, Class A-JFL
-- Morgan Stanley Capital I Trust, Series 2007-IQ16, Class A-JA
-- Morgan Stanley Capital I Trust, Series 2007-IQ16, Class B
-- Morgan Stanley Capital I Trust, Series 2007-IQ16, Class C
-- Morgan Stanley Capital I Trust, Series 2007-IQ16, Class D
-- Citigroup Commercial Mortgage Trust 2017-B1, Class F
-- MSC 2011-C3 Mortgage Trust, Class D
-- MSC 2011-C3 Mortgage Trust, Class E
-- MSC 2011-C3 Mortgage Trust, Class F
-- MSC 2011-C3 Mortgage Trust, Class G
-- WFRBS Commercial Mortgage Trust 2013-C18, Class B
-- BANK 2017-BNK7, Class F
-- COMM 2014-CCRE20 Commercial Mortgage Trust, Class F
-- GE Commercial Mortgage Corporation, Series 2004-C2, Class M
-- GE Commercial Mortgage Corporation, Series 2004-C2, Class N
-- GE Commercial Mortgage Corporation, Series 2004-C2, Class O
-- GS Mortgage Securities Trust 2013-GCJ16, Class F
-- GS Mortgage Securities Trust 2013-GCJ16, Class G
-- Bear Stearns Commercial Mortgage Securities Trust 2004-PWR5, Class M
-- COMM 2015-CCRE27 Mortgage Trust, Class F
-- JPMBB Commercial Mortgage Securities Trust 2015-C32, Class B
-- WFRBS Commercial Mortgage Trust 2012-C10, Class B
-- WFRBS Commercial Mortgage Trust 2012-C10, Class C
-- WFRBS Commercial Mortgage Trust 2012-C10, Class D
-- WFRBS Commercial Mortgage Trust 2012-C10, Class E
-- WFRBS Commercial Mortgage Trust 2012-C10, Class F
-- ReadyCap Commercial Mortgage Trust 2014-1, Class D
-- ReadyCap Commercial Mortgage Trust 2014-1, Class E
-- ReadyCap Commercial Mortgage Trust 2014-1, Class F
-- Wells Fargo Commercial Mortgage Trust 2016-C37, Class B
-- Wells Fargo Commercial Mortgage Trust 2016-C37, Class C
-- Wells Fargo Commercial Mortgage Trust 2016-C37, Class H
-- WFRBS Commercial Mortgage Trust 2014-C25, Class C
-- WFRBS Commercial Mortgage Trust 2014-C25, Class E
-- WFRBS Commercial Mortgage Trust 2014-C25, Class PEX
-- J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class C
-- SELKIRK 2013-2, Class E
-- SELKIRK 2013-2, Class F
-- SELKIRK 2013-2, Class G
-- CHT 2017-COSMO Mortgage Trust, Class C
-- CHT 2017-COSMO Mortgage Trust, Class D
-- CHT 2017-COSMO Mortgage Trust, Class E
-- Wells Fargo Commercial Mortgage Trust 2016-C32, Class E
-- Wells Fargo Commercial Mortgage Trust 2016-C32, Class F
-- Bear Stearns Commercial Mortgage Securities Trust 2007-PWR18, Class AJ
-- Bear Stearns Commercial Mortgage Securities Trust 2007-PWR18, Class AJ-A
-- Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15, Class F
-- Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15, Class G
-- Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15, Class H
-- Bank of America Merrill Lynch Commercial Mortgage Trust 2017-BNK3, Class C
-- Bank of America Merrill Lynch Commercial Mortgage Trust 2017-BNK3, Class F
-- Wells Fargo Commercial Mortgage Trust 2017-RC1, Class C
-- Wells Fargo Commercial Mortgage Trust 2017-RC1, Class D
-- Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28, Class B
-- LSTAR Commercial Mortgage Trust 2014-2, Class C
-- Wells Fargo Commercial Mortgage Trust 2014-LC18, Class B
-- Wells Fargo Commercial Mortgage Trust 2014-LC18, Class C
-- Wells Fargo Commercial Mortgage Trust 2014-LC18, Class E
-- Wells Fargo Commercial Mortgage Trust 2014-LC18, Class PEX
-- Merrill Lynch Financial Assets Inc., Series 2007-Canada 21, Class E
-- Merrill Lynch Financial Assets Inc., Series 2007-Canada 21, Class F
-- Merrill Lynch Financial Assets Inc., Series 2007-Canada 21, Class G
-- Merrill Lynch Financial Assets Inc., Series 2007-Canada 21, Class H
-- Merrill Lynch Financial Assets Inc., Series 2007-Canada 21, Class J
-- Merrill Lynch Financial Assets Inc., Series 2007-Canada 21, Class K
-- Merrill Lynch Financial Assets Inc., Series 2007-Canada 21, Class L
-- Wells Fargo Commercial Mortgage Trust 2016-C34, Class E
-- Wells Fargo Commercial Mortgage Trust 2016-C34, Class F
-- Benchmark 2018-B4 Mortgage Trust, Class G-RR
-- Cherrywood SB Commercial Mortgage Loan Trust 2016-1, Class M-2
-- A10 Permanent Asset Financing 2017-II, LLC, Class B-1
-- GS Mortgage Securities Trust 2018-GS10, Class B
-- GS Mortgage Securities Trust 2018-GS10, Class C
-- GS Mortgage Securities Trust 2018-GS10, Class D
-- GS Mortgage Securities Trust 2018-GS10, Class G-RR
-- Morgan Stanley Capital I Trust, Series 2007-TOP27, Class A-J
-- Morgan Stanley Capital I Trust, Series 2007-TOP27, Class C

DBRS also updated the Scope and Limitations section in each of the Methodologies.

DBRS deems the above-described updates to the Methodologies not to be material and has determined that no ratings are or will be changed because of these updates.

Notes:
DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.

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