DBRS Places One Class of BSPRT 2017-FL1 Under Review with Positive Implications

DBRS Limited (DBRS) placed the Class C Notes issued by BSPRT 2017-FL1 Issuer, Ltd., Under Review with Positive Implications and discontinued the rating on the Class B Notes as the class repaid with the February 2019 remittance.

The Positive Implications reflect the increased credit support to the bonds as a result of successful loan repayment as only nine of the original 25 loans remain in the trust as of the February 2019 remittance, representing a collateral reduction of 70.3% since issuance. The Class C Notes have a current balance of $45.6 million and benefit from a 63.3% credit enhancement support provided by the unrated preferred shares held by the Issuers.

Ten loans have repaid within the last four months, contributing to significant recent principal repayment of $193.8 million or 46.3% of the original trust balance. Many of these loans repaid ahead of the respective initial scheduled maturity dates. Prior to year-end 2019, six outstanding loans, with an aggregate principal balance of $74.8 million, have scheduled maturity dates; only three of which have extension options available. Based on the trailing 12 months financials ending August 2018, these loans had a weighted-average NOI growth over the DBRS Stabilized figures of 12.9%.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

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 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.

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

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada