DBRS Morningstar Confirms Ratings on Morgan Stanley Capital I Trust 2017-ASHF, With Negative Trends on Two Classes, and Removes UR-Neg. Implications.

ENPNewswire-August 31, 2021--DBRS Morningstar Confirms Ratings on Morgan Stanley Capital I Trust 2017-ASHF, With Negative Trends on Two Classes, and Removes UR-Neg. Implications

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Release date- 30082021 - DBRS, Inc. (DBRS Morningstar) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2017-ASHF issued by Morgan Stanley Capital I Trust 2017-ASHF as follows.

Class A at AAA (sf)

Class B at AA (low) (sf)

Class XEXT at A (sf)

Class C at A (low) (sf)

Class D at BBB (low) (sf)

Class E at BB (sf)

DBRS Morningstar removed the Under Review with Negative Implications designations that, given the negative impact of the Coronavirus Disease (COVID-19) pandemic on the underlying collateral, had been placed on Classes C, D, and E in September 2020. The trends for Classes A, B, and XEXT were changed to Stable from Negative. Class C has a Stable trend while Classes D and E have Negative trends. The Negative trends reflect the ongoing pandemic risk for the collateral, which may affect occupancy rates in the near term and delay the full recovery of the portfolio to pre-pandemic performance.

The rating confirmations reflect DBRS Morningstar's view that the overall credit profile for the transaction has strengthened in the last year, particularly given the sponsor's long-term commitment to the underlying hotel portfolio displayed in raising additional capital and funding cash shortfalls throughout the pandemic. The trust is secured by a 17-property portfolio comprising full-service, limited-service, and extended-stay hotels with 3,128 keys across seven U.S. states. The collateral was greatly affected by the coronavirus pandemic, which led to operating and debt service shortfalls since March 2020. The trust comprises 17 individual loans with a total trust balance of $419.0 million. Each loan features a two-year term with five one-year extension options and is cross-collateralized and cross-defaulted. The loans have an upcoming loan maturity in November 2021 and the borrower has until October 2021 to exercise the next extension option, which will likely occur. The loan is sponsored by Ashford Hospitality Trust, Inc., an experienced hotel investment company and publicly traded real estate investment trust. Marriott International, Inc. (Marriott) manages five of the hotels while Remington Lodging and Hospitality, LLC manages the remaining 12 hotels.

The portfolio is geographically diverse as the properties are located across seven states and 13 metropolitan statistical areas, and most assets are in primary markets. The...

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