DBRS Morningstar Upgrades One Class of A10 Permanent Asset Financing 2015-I, LLC

DBRS, Inc. (DBRS Morningstar) upgraded the rating on one class of the notes issued by A10 Permanent Asset Financing, 2015-I, LLC as follows:

-- Class B Notes to A (high) (sf) from A (sf)

Additionally, DBRS Morningstar confirmed the ratings of the following notes:

-- Class A Notes at AAA (sf)
-- Class C Notes at BBB (low) (sf)

All trends are Stable.

The rating upgrade on the Class B Notes reflects the continued stable performance of the pool, which consists of 42 loans secured by 47 commercial real estate properties, including office, retail, multifamily, self-storage, and industrial properties. According to the most recent reporting available, the transaction reported a weighted-average loan-to-value ratio of 63.8%, a weighted-average debt yield of 8.9% and a weighted-average occupancy rate of 94.8%. Additionally, the pool has exhibited weighted-average cash flow growth of 3.2% over YE2018 figures, according to Q2 2019 and Q3 2019 annualized reporting, with a weighted-average debt service coverage ratio of 1.63 times.

The transaction originally had a maximum funded balance of $300.0 million, which was fully funded in May 2017, initiating sequential paydown; however, earnout facilities were drawn upon through May 2018. To date, there has been collateral reduction of 4.4% since May 2017 due to scheduled loan amortization and the repayment of one loan.

The transaction is largely concentrated by office properties (11 loans representing 42.7% of the pool) and retail properties (18 loans representing 37.0% of the pool). The largest single loan is the 610 West Ash loan, secured by an office property in downtown San Diego, representing 11.5% of the pool balance; however, DBRS Morningstar analyzed the Broadbent Portfolio, which consists of five single loans secured by retail properties in the Indianapolis, Indiana, metropolitan statistical area, owned by the same sponsor totaling 14.9% of the current pool balance as a single loan. No loans are scheduled to mature until 2024.

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:

-- Broadbent Portfolio (14.9% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com The platform includes issuer and servicer 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 North American CMBS Surveillance Methodology, which can be found on 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 dbrsmorningstar.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.

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

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