OREANDA-NEWS. Fitch Ratings assigns ratings and Rating Outlooks to Waldorf Astoria Boca Raton Trust 2016-BOCA commercial mortgage pass-through certificates series 2016-BOCA as follows:

--$145,100,000 class A 'AAAsf'; Outlook Stable;

--$275,000,000a class X-CP 'BBB-sf'; Outlook Stable;

--$275,000,000a class X-NCP 'BBB-sf'; Outlook Stable;

--$50,500,000 class B 'AA-sf'; Outlook Stable;

--$37,400,000 class C 'A-sf'; Outlook Stable;

--$42,000,000 class D 'BBB-sf'; Outlook Stable;

--$80,000,000 class E 'BB-sf'; Outlook Stable;

--$75,000,000 class F 'B-sf'; Outlook Stable.

(a) Notional amount and interest-only.

The certificates represent the beneficial interest in a trust that holds a two-year, floating-rate, interest-only $430 million mortgage loan secured by the fee and leasehold interests in the 1,047-room Waldorf Astoria Boca Raton Resort & Club. The loan is sponsored by the Blackstone Group, L. P. (Blackstone). The loan was co-originated by JPMorgan Chase Bank, National Association (rated 'A+'/'F1+'/Stable Outlook) and Goldman Sachs Mortgage Company (rated 'A'/'F1'/Stable Outlook).

KEY RATING DRIVERS

High Leverage on Full Debt Stack: The total debt package includes mezzanine financing in the amount of $285 million that is not included in the trust. Fitch's stressed debt service coverage ratio (DSCR) and loan to value (LTV) for the full debt stack are 0.66x and 165.5%, respectively. Fitch's DSCR and LTV for the trust component of the debt are 1.10x and 99.5%.

Asset Quality: Fitch assigned the Waldorf Astoria Boca Raton Resort and Club a property quality grade of A-'. The collateral has both lakefront (Lake Boca Raton) and oceanfront (Atlantic Ocean) land. Property amenities include: a full-service spa, three fitness centers, 30 tennis courts, 16 food and beverage (F&B) outlets, two 18-hole golf courses, seven swimming pools including a FlowRider wave simulator, a 32-slip marina and approximately 200,000 square feet of indoor and outdoor meeting space.

Significant Capital Invested by Sponsor: The sponsor acquired the property in 2004 and has invested $274.2 million ($261,886/key) since acquisition. Completed renovations include: complete room renovations at the Cloister, the Tower, and the Bungalows; construction of the Boca Beach Club; upgrades to the Yacht Club rooms; lobby modernization; F&B outlet improvements; and updating the meeting facilities.

Non-traditional Hotel Income: For the trailing 12-month (TTM) period ended April 2016, approximately $64.1 million of non-room and non-F&B revenue was generated by the property, representing 29.6% of the property's total revenues. Ancillary revenue sources include golf, spa, tennis, beach, marina and club fees.

RATING SENSITIVITIES

Fitch found that the 'AAAsf' class could withstand an approximate 72.8% decrease to the most recent actual net cash flow (NCF) prior to experiencing $1 of loss to the 'AAAsf' rated class. Fitch performed several stress scenarios in which the Fitch NCF was stressed. Fitch determined that a 63.2% reduction in its implied NCF would cause the notes to break even at a 1x debt service coverage ratio (DSCR), based on the actual debt service.

Fitch evaluated the sensitivity of the ratings for class A and found that a 21% decline in Fitch's implied NCF would result in a one-category downgrade, while a 47% decline would result in a downgrade to below investment grade.

The Rating Sensitivity section in the presale report includes a detailed explanation of additional stresses and sensitivities. Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www. fitchratings. com' or by clicking on the link.

DUE DILIGENCE USAGE

Fitch was provided with third-party due diligence information from Ernst and Young, LLP. The third-party due diligence information was provided on ABS Due Diligence Form-15E and focused on a comparison and re-computation of certain characteristics with respect to the mortgage loan and related mortgaged properties in the data file. Fitch considered this information in its analysis, and the findings did not have an impact on our analysis.