DBRS Confirms Ratings on Bank of America Merrill Lynch Commercial Mortgage Trust 2016-UBS10

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2016-UBS10 issued by Bank of America Merrill Lynch Commercial Mortgage Trust 2016-UBS10:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class X-D at BBB (high) (sf)
-- Class D at BBB (sf)
-- Class X-E at BBB (low) (sf)
-- Class E at BB (high) (sf)
-- Class X-F at BB (sf)
-- Class F at BB (low) (sf)
-- Class X-G at B (sf)
-- Class G at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The transaction consists of 52 loans secured by 84 commercial properties. As of the May 2017 remittance report, the trust balance was $872.0 million, representing collateral reduction of 0.5% from issuance as a result of scheduled amortization with all original loans remaining in the pool.

As of the May 2017 remittance report, loans representing 91.7% of the pool are reporting YE2016 figures with a weighted-average (WA) debt service coverage ratio (DSCR) of 1.63 times (x) and a WA debt yield of 10.0%. These figures compare with the DBRS issuance WA DSCR and DBRS issuance WA debt yield of 1.45x and 8.9%, respectively, for those loans. In addition, the top 15 loans reporting YE2016 net cash flow (NCF) figures showed WA NCF growth of 16.3% over the DBRS issuance NCF figures with a WA DSCR of 1.70x compared with the WA DBRS issuance DSCR of 1.46x. As of the April 2017 remittance report, there are no loans on the watchlist or in special servicing.

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 register or log into DBRS CMBS IReports at www.ireports.dbrs.com.

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

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.