DBRS Confirms All Classes of BBCMS Mortgage Trust 2017-C1

DBRS, Inc. (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2017-C1 (the Certificates) issued by BBCMS Mortgage Trust 2017-C1:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class X-E at BB (high) (sf)
-- Class E at BB (sf)
-- Class X-F at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class X-G at B (sf)
-- Class G at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has remained generally in line with DBRS’s expectations at issuance. The collateral consists of 58 fixed-rate loans secured by 75 commercial and multifamily properties. As of the February 2019 remittance, there has been a collateral reduction of 0.9% since issuance as a result of scheduled loan amortization as all original loans remain in the pool with a current outstanding balance of $848.1 million.

According to YE2017 financial reporting, the transaction had a weighted-average (WA) debt service coverage ratio (DSCR) of 1.68 times (x), above the WA DBRS Term figure of 1.57x. The largest 15 loans, which collectively represent 62.1% of the outstanding pool balance, reported a YE2017 WA DSCR of 1.81x. Performance continued to improve in 2018 as the WA partial-year DSCR was 1.87x.

There are ten loans on the servicer’s watchlist, representing 11.4% of the current pool balance. The loans have been flagged for various reasons including cash flow declines, tenant rollover risk and deferred maintenance.

Classes X-A, X-B, X-D, X-E, X-F and X-G are interest-only (IO) certificates that reference 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 are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#5 – Merrill Lynch Drive (4.9% of the pool)
-- Prospectus ID#8 – Center West (3.5% of the pool)
-- Prospectus ID#11 – State Farm Data Center (2.9% of the pool)
-- Prospectus ID#25 – Dogwood Station (1.4% of the pool)
-- Prospectus ID#28 – Wolfchase Galleria (1.2% of the pool)
-- Prospectus ID#52 – Washington Place Shopping Center (0.4% of the pool)

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 most outstanding CMBS transactions (including non-DBRS rated), as well as loan-level and transaction-level commentary for most DBRS-rated and -monitored transactions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology, which can be found on www.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, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. 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 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. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

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

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