DBRS Morningstar Confirms All Classes of Selkirk 2013-1

DBRS, Inc. (DBRS Morningstar) confirmed the ratings on the following classes of Asset-Back Notes issued by Selkirk 2013-1 (the Trust) as follows:

-- Class A2 at AAA (sf)
-- Class B at AAA (sf)
-- Class C at AA (sf)
-- Class D at A (high) (sf)
-- Class E at BBB (sf)
-- Class F at BB (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance, including the significant repayment of the underlying loans, for the transaction since issuance. As of the March 2020 remittance, there has been a collateral reduction of 73.6% since issuance resulting from scheduled amortization and loan repayments, with 18 loans remaining in the pool out of the original 55 loans. The pool maintains a heavy concentration of loans secured by office properties, which represent 46.7% of the pool. As of the March 2020 remittance, there were no loans on the servicer’s watchlist or in special servicing.

The largest 10 loans represent 84.2% of the pool and based on YE2018 reporting (most recent available), overall performance remained healthy, with a weighted-average (WA) debt service coverage ratio (DSCR) and WA loan-to-value ratio of 1.85 times (x) and 47.1%, respectively. These loans reported a WA net cash flow (NCF) growth of 36.5% over the DBRS Morningstar NCF figures from issuance. The largest two loans, PetSmart Corporate Headquarters (20.3% of the pool) and 777 Long Ridge Road - Long Ridge Office Park (15.3% of the pool), are both single or nearly single tenant office properties, which reported YE2018 DSCR figures of 3.12x and 1.42x, respectively.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

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

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

-- Prospectus ID#4 – 777 Long Ridge Road - Long Ridge Office Park (15.3% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes loan-level data for most outstanding CMBS transactions (including non-DBRS Morningstar-rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

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

The principal methodology is the North American CMBS Surveillance Methodology, which can be found on www.dbrsmorningstar.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 Morningstar 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.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar 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 Morningstar 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.

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