DBRS Upgrades Rating and Changes Trend of FREMF 2011-K702 Mortgage Trust, Series 2011-K702

DBRS Limited (DBRS) has today upgraded the rating for the Multifamily Mortgage Pass-Through Certificates, Series 2011-K702, Class B certificates of FREMF 2011-K702 Mortgage Trust, Series 2011-K702 to AA (sf) from A (high) (sf) and has changed the trend to Positive.

The rating upgrade and trend change reflect the strong performance of the transaction, which has experienced collateral reduction of 14.9% since issuance, with 68 of the original 72 loans remaining in the pool, as of the April 2017 remittance. In the next 12 months 100% of the pool is scheduled to mature. The deal benefits from defeasance collateral as 32 loans, representing 48.2% of the pool, are fully defeased. According to the most recent reporting, the transaction has a weighted-average (WA) debt service coverage ratio (DSCR) of 1.66 times and a WA debt yield of 11.6%.

There are no loans in special servicing and there are three loans, all of which are in the top five and represent 10.3% of the pool, that are on the servicer’s watchlist. One of these loans, representing 3.1% of the pool, is on the servicer’s watchlist as a result of a building fire that destroyed 20 units. The remaining loans are on the watchlist for reporting low DSCRs.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans as well as for the largest 15 loans in the pool in the DBRS CMBS IReports platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

Notes:
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 to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.

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