DBRS Morningstar Confirms All Classes of A10 Permanent Asset Financing 2017-II, LLC

DBRS Limited (DBRS Morningstar) confirmed its ratings on the following classes of A10 Permanent Asset Financing 2017-II, LLC:

-- Class A Notes at AAA (sf)
-- Class B Notes at A (sf)
-- Class C Notes at BBB (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since the last rating action. The pool consists of 36 loans secured by 51 commercial real estate properties, including office, retail, multifamily, self-storage, industrial, and hotel collateral. There are three loans, representing 6.5% of the pool, on the servicer’s watchlist. There are no loans in special servicing and, according to the collateral manager, no borrowers have formally requested relief related to the Coronavirus Disease (COVID-19) pandemic.

The transaction originally had a potential maximum funded balance of $400.0 million with a funding period that expired in December 2020. At that time, the transaction consisted of 38 loans with an aggregate balance of $292.4 million. The transaction reached its maximum funded balance of $297.2 million in December 2019 and began amortizing with the November 2020 Payment Date. As of the February 2022 remittance, the transaction consisted of 36 loans with an aggregate principal balance of approximately $268.4 million, representing a 9.7% collateral reduction as a result of scheduled amortization and the repayment of three loans.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

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

The principal methodology is North American CMBS Surveillance Methodology (March 26, 2021), 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.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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.

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

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