DBRS Confirms All Classes of Real Estate Asset Liquidity Trust, Series 2017

DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2017 (the Certificates) issued by Real Estate Asset Liquidity Trust, Series 2017 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D-1 at BBB (sf)
-- Class D-2 at BBB (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (sf)
-- Class G at B (sf)
-- Class X at A (high) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since issuance. The transaction closed in October 2017 and consists of 71 fixed-rate loans secured by 111 commercial properties with an original balance of $406.8 million. As of the September 2018 remittance, all loans remain in the pool with a trust balance of $398.7 million, representing a collateral reduction of 2.0% since issuance. Thirty-seven loans, representing 60.0% of the pool, reported year-end 2017 financials. Based on these figures, the pool reported a weighted-average (WA) debt-service coverage ratio (DSCR) and debt yield of 1.49 times (x) and 10.7%, respectively, compared with the DBRS Term figures of 1.31x and 8.8% at issuance, respectively. Ten of the top 15 loans reported year-end financials, reflective of a WA DSCR of 1.41x.

There is sponsor concentration within this transaction, as there are only 37 different sponsors across the 71 loans. The most significant sponsors are Skyline Group of Companies (Skyline Group) (four loans, representing 14.2% of the pool balance) and AMERCO Real Estate Company (AMERCO) (17 loans, representing 14.4% of the pool balance). Loans sponsored by Skyline Group are full recourse and AMERCO is viewed as having strong sponsorship strength.

There are no loans on the servicer’s watchlist or in special servicing as of the September 2018 remittance.

Class X is an interest-only (IO) certificates that references 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:

-- Prospectus ID#11 - Fitch St Retail

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 CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is North American CMBS 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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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