Class A at
Class X-A at
Class B at AA (high) (sf)
Class C at A (high) (sf)
Class D at BBB (high) (sf)
Class E at BBB (sf)
All trends are Stable. The ratings have been removed from Under Review with Developing Implications, where they were placed on
On
Prior to the finalization of the NA SASB Methodology, the DBRS Morningstar ratings for the subject transaction and all other DBRS Morningstar-rated transactions subject to the methodology in question were previously placed Under Review with Developing Implications, as the proposed methodology changes were material.
The subject rating actions are the result of the application of the NA SASB Methodology in conjunction with the 'North American CMBS Surveillance Methodology,' as applicable. Qualitative adjustments were made to the final loan-to-value (LTV) sizing benchmarks used for this rating analysis.
The transaction consists of a
The property continues to command above-market rents, as recently signed office leases have averaged a gross rental rate of approximately
At issuance, the property had a 10-year average occupancy rate of 96.3%; however, occupancy dropped when Berenson downsized its space in
At YE2019, the loan reported a DSCR of 1.71 times (x), compared with the YE2018 DSCR of 2.23x, and the DBRS Morningstar Term DSCR at issuance of 2.93x. In
The resulting NCF figure was
The cap rate applied is at the lower end of the range of DBRS
DBRS Morningstar made positive qualitative adjustments to the final LTV sizing benchmarks used for this rating analysis totalling 5.0% to account for cash flow volatility, property quality, and market fundamentals. DBRS Morningstar also made other negative adjustments to account for the potential of future mezzanine financing and a high DBRS Morningstar LTV.
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.
Class X-A is an interest-only (IO) certificate that references a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.
All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.
DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.
For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com The platform includes loan-level data for most outstanding CMBS transactions (including non-DBRS Morningstar-rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.
Notes:
All figures are in
The principal methodologies are the North American Single-Asset/Single-Borrower Ratings Methodology and North American CMBS Surveillance Methodology, 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.
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. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
Tel. +1 416 593-5577
Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
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29-Apr-20 Commercial Mortgage Pass-Through Certificates, Series 2016-667M, Class A ConfirmedAAA (sf) Stb CA
29-Apr-20 Commercial Mortgage Pass-Through Certificates, Series 2016-667M, Class X-A ConfirmedAAA (sf) Stb CA
29-Apr-20 Commercial Mortgage Pass-Through Certificates, Series 2016-667M, Class B Confirmed AA (high) (sf) Stb CA
29-Apr-20 Commercial Mortgage Pass-Through Certificates, Series 2016-667M, ClassC Confirmed A (high) (sf) Stb CA
29-Apr-20 Commercial Mortgage Pass-Through Certificates, Series 2016-667M, Class D Confirmed BBB (high) (sf) Stb CA
29-Apr-20 Commercial Mortgage Pass-Through Certificates, Series 2016-667M, Class E Confirmed BBB (sf) Stb CA
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