DBRS Morningstar Confirms All Classes of A10 Permanent Asset Financing 2015-I, LLC

DBRS Limited (DBRS Morningstar) confirmed all classes of the notes issued by A10 Permanent Asset Financing, 2015-I, LLC as follows:

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

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since issuance. The pool consists of 42 loans secured by 47 commercial real estate properties, including office, retail, multifamily, self-storage, and industrial properties. There are seven loans, representing 9.2% of the pool, being monitored on the servicer’s watchlist. There are no loans in special servicing and, according to the collateral manager, no borrowers have formally requested relief related to the Coronavirus Disease (COVID-19) pandemic.

The transaction originally had a maximum funded balance of $300.0 million, which was fully funded in May 2017, initiating a sequential paydown; however, earn-out facilities were drawn upon through May 2018. Since May 2017, there has been a collateral reduction of 6.1% from scheduled loan amortization and the repayment of one loan.

The largest single loan is the 610 West Ash loan, which is secured by an office property in downtown San Diego, representing 11.6% of the pool balance; however, DBRS Morningstar considered the Broadbent Portfolio, which consists of five single loans secured by retail properties in the Indianapolis metropolitan statistical area and owned by the same sponsor, totalling 14.7% 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 can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

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

The principal methodology is North American CMBS Surveillance Methodology (March 6, 2020), 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.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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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