DBRS Assigns Final Ratings to German Residential Funding 2013-2 Limited

DBRS Ratings Limited (DBRS) has today finalized the ratings to the following classes of Commercial Mortgage-Backed Floating-Rate Notes due November 2024 (collectively, the Notes) to be issued by German Residential Funding 2013-2 Limited:

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

All trends are Stable.

German Residential Funding 2013-2 Limited is a securitisation of a Senior Loan advanced under three Facilities. Facility A1, A2 and A3 have a combined balance of EUR 699,700,000. The fixed-rate A1 and A2 Facilities will have a combined initial balance of EUR 664,714,869 and the floating-rate A3 Facility will have an initial balance of EUR 34,985,131. Each of the Facilities is being made to three Borrowers, all of which are subsidiaries of the Sponsor. The Sponsor is GAGFAH S.A. (GAGFAH), one of the largest residential property companies in Germany. The transaction is arranged by Bank of America Merrill Lynch and Deutsche Bank for the benefit of the Sponsor, with the purpose of providing capital to refinance the existing facilities and pay respective closing costs.

The collateral portfolio for the transaction consists of 22,849 residential units, 79 commercial units, 5,026 parking units and 1,075 other units (Excluding own-used units). The residential and commercial units represent a total rentable area of 1,400,706 square metres. All of the properties are located in Germany. Property management services for the portfolio are provided by a subsidiary of the Sponsor.

The final legal maturity of the Notes is in November 2024, six years beyond the maturity of the loans, if no extension option is exercised by the Borrower or the Servicer. This is believed to be sufficient time to enforce and repay bondholders, given the unique security structure and the property’s jurisdiction.

Notes:
The principal methodologies applicable are European CMBS Rating Methodology, Legal Criteria for European Structured Finance Transactions, Commercial Mortgage Servicer Evaluations, Swap Criteria for European Structured Finance Transactions and Unified Interest Rate Model for European Securitisations, which can be found on www.dbrs.com under Methodologies.

The sources of information used for this rating include Bank of America Merrill Lynch, Deutsche Bank AG (London Branch), German Residential Funding 2013-2 Limited, GAGFAH S.A. and CBRE. DBRS considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

This rating concerns a newly issued financial instrument. This is the first DBRS rating on this financial instrument.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.

For additional information on this rating, please see Linking Document: European CMBS under Related Research to the right or by contacting us at info@dbrs.com.

Lead Analyst: Scott Goedken
Rating Committee Chair: Mary Jane Potthoff
Initial Rating Date: 21 October 2013