DBRS Upgrades Four Classes and Confirms Two Classes of Asset-Backed Notes Issued by Selkirk 2014-3A

DBRS Limited (DBRS) upgraded the ratings of the following classes of Asset-Backed Notes issued by Selkirk 2014-3A:

-- Class C to AA (low) (sf) from A (sf)
-- Class D to A (low) (sf) from BBB (sf)
-- Class E to BBB (low) (sf) from BB (sf)
-- Class F to BB (sf) from B (high) (sf)

DBRS also confirmed the ratings of the following classes:
-- Class A2 at AAA (sf)
-- Class B at AA (sf)

All trends are Stable.

The rating upgrades reflect the increased credit support to the bonds as a result of successful loan repayments as well as the overall strong performance of the remaining collateral. As of the November 2018 remittance, there has been a collateral reduction of 46.4% since issuance as 37 loans remain in the pool out of the original 62. The top 15 loans continue to exhibit stable performance with a weighted-average debt service coverage ratio and Debt Yield of 1.95 times and 16.8%, respectively, based on the most recent year-end reporting available for the individual loans.

Seven loans in the top 15, comprising 27.9% of the pool balance, are secured by properties in California. Six of the properties are not located near the recent California wild fires while the remaining loan, Prospectus ID#13 – Westlake Village Marketplace, remains open for business and was not materially affected by the wild fires. There are no loans in special servicing and no loans on the servicer’s watchlist.

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 loan in the transaction:

• Prospectus ID#4 – 750 East Pratt Street (5.7% of the current pool balance)

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:
The principal methodology is North American CMBS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria. 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.