Fitch Assigns Final Ratings to Bank of America Merrill Lynch Comm Mtg Trust 2016-UBS10 P-T Certs
OREANDA-NEWS. Fitch Ratings has assigned the following ratings and Rating Outlooks to Bank of America Merrill Lynch Commercial Mortgage Trust 2016-UBS10 Commercial Mortgage Pass-Through Certificates:
--$31,300,000 class A-1 'AAAsf'; Outlook Stable;
--$135,900,000 class A-2 'AAAsf'; Outlook Stable;
--$49,500,000 class A-SB 'AAAsf'; Outlook Stable;
--$175,000,000 class A-3 'AAAsf'; Outlook Stable;
--$221,682,000 class A-4 'AAAsf'; Outlook Stable;
--$613,382,000b class X-A 'AAAsf'; Outlook Stable;
--$89,816,000b class X-B 'AA-sf'; Outlook Stable;
--$43,813,000 class A-S 'AAAsf'; Outlook Stable;
--$46,003,000 class B 'AA-sf'; Outlook Stable;
--$44,909,000 class C 'A-sf'; Outlook Stable;
--$51,480,000ab class X-D 'BBB-sf'; Outlook Stable;
--$21,906,000ab class X-E 'BBsf'; Outlook Stable;
--$10,954,000ab class X-F 'Bsf'; Outlook Stable;
--$51,480,000a class D 'BBB-sf'; Outlook Stable;
--$21,906,000a class E 'BBsf'; Outlook Stable;
--$10,954,000a class F 'Bsf'; Outlook Stable.
(a) Notional amount and interest-only.
(b) Privately placed and pursuant to Rule 144A.
Fitch does not rate the $18,620,000ab class X-G, the $25,193,056ab class X-H, the $18,620,000a class G, and the $25,193,056a class H.
The certificates represent the beneficial ownership interest in the trust, primary assets of which are 52 loans secured by 84 commercial properties having an aggregate principal balance of approximately $876.3 million as of the cut-off date. The loans were contributed to the trust by UBS Real Estate Securities, Inc., Barclays Bank PLC, Morgan Stanley Mortgage Capital Holdings, LLC, and Bank of America, National Association.
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 79.6% of the properties by balance, cash flow analysis of 84.8%, and asset summary reviews on 100% of the pool.
KEY RATING DRIVERS
Higher Fitch Leverage: The transaction has higher leverage statistics than other recent Fitch-rated transactions. The Fitch debt service coverage ratio (DSCR) and loan to value (LTV) are 1.14x and 108.2%, respectively. This is worse than other Fitch-rated fixed-rate multiborrower transactions; the year-to-date (YTD) 2016 average Fitch DSCR is 1.17x and the YTD 2016 average Fitch LTV is 107.9%.
High Concentration of Pari Passu Loans: Twelve loans representing 45.1% of the pool by balance are pari passu loans. Ten of the pari passu loans (35.5% of the pool) have their controlling notes securitized in other transactions. Two loans, In-Rel 8 (6.8% of the pool) and Grove City Premium Outlets (2.7% of the pool) have their controlling notes securitized in this transaction.
Less Concentrated Pool: The top 10 loans make up 51.5% of the pool, which is below the YTD 2016 average of 54.8% for other Fitch-rated fixed-rate multiborrower transactions. The pool's Loan Concentration Index (LCI) of 359 is below the YTD 2016 average of 415.
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