DBRS Morningstar Confirms Rating on the Remaining Class of Multi Security Asset Trust LP, Series 2005-RR4
CMBSDBRS Limited (DBRS Morningstar) confirmed the Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4, Class N issued by Multi Security Asset Trust LP, Series 2005-RR4 (MSAT 2005-RR4) at BB (high) (sf). The trend is Stable.
The rating confirmation reflects the continued stable performance of the one remaining underlying commercial mortgage-backed security (CMBS) transaction contributing to the MSAT 2005-RR4 capital structure. While there has been a slight erosion of credit support since the last review of 1.6% because of interest shortfalls, Class N of the subject transaction has current credit support of 43.5% from the unrated bond, Class O. Of the original 16 underlying CMBS transactions that contributed to the MSAT 2005-RR4 transaction, the contributing classes in 15 transactions have paid off in full. The PMAC 1999-C1 transaction is the only remaining underlying transaction currently contributing to the MSAT 2005-RR4 transaction, which has experienced a collateral reduction of 99.2% since issuance because of successful loan repayments and recoveries on liquidated loans.
As of the March 2020 remittance, there are two loans remaining in the PMAC 1999-C1 transaction, both of which are performing. The larger of the two loans, Regal Cinemas, Inc. (Regal Cinemas; 82.6% of the current underlying pool balance), is secured by a single-tenant movie theatre located in Fredericksburg, Virginia. The property is 100.0% occupied by Regal Cinemas on a lease through June 2023, coterminous with loan maturity. Per the YE2019 financials, the loan reported a debt service coverage ratio and debt yield of 1.07 times and 18.1%, respectively. The performance of loan has remained consistent since issuance.
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.
Notes:
The principal methodology is the 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.
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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 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@dbrsmorningstar.com.
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.
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