DBRS Morningstar Upgrades Ratings on Two Classes, Discontinues Rating on One Class of MSC 2011-C3 Mortgage Trust.
ENPNewswire-October 5, 2021--DBRS Morningstar Upgrades Ratings on Two Classes, Discontinues Rating on One Class of MSC 2011-C3 Mortgage Trust
(C)2021 ENPublishing - http://www.enpublishing.co.uk
Release date- 04102021 - DBRS Limited (DBRS Morningstar) upgraded its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2011-C3 issued by MSC 2011-C3 Mortgage Trust as follows.
Class C to AAA (sf) from AA (sf)
Class D to AA (low) (sf) from A (sf)
In addition, DBRS Morningstar confirmed its ratings on the following classes:
Class E at BBB (sf)
Class F at BBB (low) (sf)
Class X-B at BB (low) (sf)
Class G at B (high) (sf)
In addition, DBRS Morningstar discontinued its rating on Class B as it was paid out as of the September 2021 remittance. DBRS Morningstar changed the trend on Class E to Negative from Stable. In addition, the trends on Classes F, X-B, and G remain Negative, while the trends on Classes C and D remain Stable.
The rating upgrades reflect the significant collateral reduction in the last nine months. Since December 2020, 34 loans were repaid, resulting in a collateral reduction to $180.4 million as of the September 2021 remittance from $637.8 million. As of September 2021, five loans remain in the pool. The pool is now concentrated in two loans, Westfield Belden Village (Prospectus ID#2, 51.0% of the pool) and Oxmoor Center (Prospectus ID#3, 43.5% of the pool), both of which are specially serviced loans secured by regional mall collateral. The Negative trends reflect DBRS Morningstar's concerns with both loans, which are past their respective maturity dates and are in the process of finalizing loan modifications.
The largest loan in special servicing and in the pool, Westfield Belden Village, transferred to special servicing for imminent monetary default in May 2020, and the special servicer is currently negotiating terms for a loan modification. The loan is secured by a portion of a single-level regional mall in Canton, Ohio, which originally served to refinance existing debt for the Westfield Group (Westfield); however, Starwood Capital Group (Starwood) assumed the loan in 2013 as part of its acquisition of seven malls from Westfield. To refinance the portfolio, Starwood raised a significant amount of capital through Israeli-backed bonds that have defaulted, triggering an accelerated payment clause enabling the bondholders to seize control of the assets. A joint venture between Pacific Retail Capital Partners and...
To continue reading
Request your trial