DBRS Publishes Updated European CMBS Rating and Surveillance Methodology

DBRS Ratings Limited (DBRS) published its updated “European CMBS Rating and Surveillance Methodology” (the Methodology). The updated Methodology, effective 28 September 2018, replaces the prior version published on 19 February 2018. The publication follows the conclusion of the Request for Comment period, which began on 14 June 2018. No comments were received during the Request for Comment period.

The updated Methodology reflects the reclassification of the DBRS Large Loan Sizing Hurdles (the Hurdles) from a predictive model to an 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 broader analysis conducted to determine a rating.

Press releases that include classes of debt rated by DBRS that previously included material deviations from the Hurdles over the past year (as of the most recent rating action) within the European commercial mortgage-backed securities (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 Hurdles in the rated transactions listed below or in other European CMBS ratings assigned by DBRS. These differences will be disclosed in accordance with applicable regulatory requirements.

-- Class A of Taurus CMBS UK 2014-1 Limited (https://www.dbrs.com/research/312187/dbrs-confirms-taurus-cmbs-uk-2014-1-ratings)
-- Class B of Taurus CMBS (Pan-European 2007-1 Limited (https://www.dbrs.com/research/331822/dbrs-takes-rating-actions-on-taurus-cmbs-pan-european-2007-1-limited)
-- Class C of Taurus CMBS (Pan-European 2007-1 Limited (https://www.dbrs.com/research/331822/dbrs-takes-rating-actions-on-taurus-cmbs-pan-european-2007-1-limited)
-- Class D of Taurus 2016-1 DEU DAC (https://www.dbrs.com/research/324363/dbrs-takes-rating-actions-on-several-european-cmbs-transactions-following-methodology-update)
-- Class E of Taurus 2016-1 DEU DAC (https://www.dbrs.com/research/324363/dbrs-takes-rating-actions-on-several-european-cmbs-transactions-following-methodology-update)

Other changes primarily consist of edits and additions to better reflect current practices in the European commercial real estate and CMBS markets.

DBRS also updated the Scope and Limitations section in the Methodology.

DBRS deems the above-described updates not to be material and has determined that no ratings are or will be changed as a result 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.