Class F to CCC (sf) from B (low) (sf)
DBRS Morningstar also confirmed the ratings on the following classes:
Class A-3A at
Class A-3B at
Class A-4 at
Class A-SB at
Class A-M at
Class X-A at
Class B at AA (low) (sf)
Class X-B at A (sf)
Class C at A (low) (sf)
Class X-C at BB (high) (sf)
Class D at BB (sf)
Class X-D at B (high) (sf)
Class E at B (sf)
Class X-E at B (low) (sf)
Class G at CCC (sf)
The trends on Classes D, E, X-C, X-D, and X-E are Negative. DBRS Morningstar changed the trends on Classes C and X-B to Stable from Negative. Classes F and G have ratings that do not carry trends. All other trends are Stable. DBRS Morningstar also maintained the Interest in Arrears designation on Classes E, F, and G.
The downgrade and Negative trends resulted primarily from the anticipated losses to the trust for certain loans in special servicing as of the
The pool has a significant concentration in retail and hospitality properties, representing 36.1% and 17.2% of the pool balance, respectively, with many of those loans currently on the servicer's watchlist. These property types have been the most severely affected by the effects of the Coronavirus Disease (COVID-19) pandemic and, as such, these concentrations suggest increased risks for the trust, particularly for the non-investment-grade classes, since issuance.
As of the
Four loans, representing 11.8% of the pool, are with the special servicer. The largest, the Sheraton North Houston loan, is secured by a 419-key full-service hotel in
The borrower has advised the servicer that cash flow shortfalls will no longer be funded and the special servicer has initiated proceedings to install a receiver. A
The
As previously mentioned, a curtailment payment in excess of
At issuance, DBRS Morningstar assigned an investment-grade shadow rating on two 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.
DBRS Morningstar materially deviated from its North American CMBS Insight Model when determining the ratings assigned to Classes B and C, as the quantitative results suggested a lower rating on these classes. The material deviation is warranted given the uncertain loan-level event risk.
Classes X-A, X-B, X-C, X-D, and X-E are interest-only (IO) certificates that reference 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.
The DBRS Viewpoint platform provides additional information on this transaction and underlying loans including DBRS Morningstar metrics, commentary, servicer-reported cash flows, and other performance related data.
For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes issuer and servicer 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 methodology is North American CMBS Surveillance Methodology (
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.
For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.
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.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are monitored.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
Tel. +1 (416) 597 7537
Ratings
Date Issued Debt Rated Action Rating Trend Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class A-3A ConfirmedAAA (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class A-3B ConfirmedAAA (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class A-4 ConfirmedAAA (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class A-M ConfirmedAAA (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class A-SB ConfirmedAAA (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class X-A ConfirmedAAA (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class B Confirmed AA (low) (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class X-B Trend Change A (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class X-B Confirmed A (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, ClassC Tren d Change A (low) (sf) Stb CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, ClassC Confirmed A (low) (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class X-C Confirmed BB (high) (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class D Confirmed BB (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class X-D Confirmed B (high) (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, ClassE In t. in Arrears B (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, ClassE Confirmed B (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class X-E Confirmed B (low) (sf) Neg CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, ClassF In t. in Arrears CCC (sf) -- CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class F Downgraded CCC (sf) -- CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, ClassG In t. in Arrears CCC (sf) -- CA
24-Jun-21 Commercial Mortgage Pass-Through Certificates, Series 2016-C1, Class G Confirmed CCC (sf) -- CA
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