DBRS Confirms Ratings of A10 Permanent Asset Financing 2015-I, LLC

DBRS Limited (DBRS) confirmed the ratings on the Notes issued by A10 Permanent Asset Financing 2015-I, LLC as follows:

-- Class A Notes at AAA (sf)
-- Class B Notes at A (low) (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. According to the January 2019 remittance, 37 of the original 38 loans remain in the trust, with an aggregate principal balance of approximately $292.5 million. The transaction originally had a maximum funded balance of $300.0 million, which was fully funded in May 2017, initiating sequential paydown; however, earnout facilities were drawn upon through May 2018. To date, there has been collateral reduction of 2.2% since May 2017 due to principal paydown, loan repayment and scheduled loan amortization.

The transaction consists of performing, stabilized loans secured by traditional commercial real estate property types including office (42.6% of the pool), retail (37.6% of the pool), multifamily (12.8% of the pool), self-storage (5.3% of the pool) and industrial (1.7% of the pool). Currently, 34 loans (92.5% of the pool) are amortizing with scheduled maturities ranging from August 2023 through March 2037. Per the Q3 2018 financials (mostly trailing nine-month and trailing 12-month figures), the pool had a weighted-average (WA) debt service coverage ratio (DSCR) and debt yield of 1.76 times (x) and 10.6%, respectively, compared to the issuer’s origination figures of 1.54x and 8.8%, respectively. The top 15 loans (76.7% of the pool) reported a WA DSCR of 1.80x compared to the issuer’s issuance figure of 1.48x, reflecting a 20.6% WA net cash flow growth since issuance.

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

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loan in the transaction:

-- Broadbent Portfolio (14.9% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for most outstanding commercial mortgage-backed securities transactions (including non-DBRS rated), as well as loan-level and transaction-level commentary for most DBRS rated and monitored transactions.

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

The principal methodology is North American CMBS Surveillance Methodology, which can be found on www.dbrs.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 Global Structured Finance Related Methodologies document, which can be found on www.dbrs.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.

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@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS 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.dbrs.com or contact us at info@dbrs.com.

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