DBRS Publishes Updated North American Single-Asset/Single Borrower Methodology

DBRS conducted a periodic review of the “North American Single-Asset/Single-Borrower Methodology” and published an updated version with the following changes:

(1) Updated cap rate ranges with regards to regional malls as well as industrial, office and self-storage properties;
(2) The addition of Appendix B that sets forth the DBRS approach for credit tenant leases. The content of this appendix was transferred with no material changes from DBRS’s “North American CMBS Multi-borrower Rating Methodology”; and
(3) Updated guidelines for sponsor strength, property quality, diversity, release provisions and pro-rata pay structures.

There were no changes made to the DBRS Sizing Hurdles.

This update supersedes the previous version published in January 2018 and is effective as of January 11, 2019. DBRS deems these changes to the methodology not to be material and has determined that no ratings are expected to change as a result of this update.

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

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