OREANDA-NEWS. Fitch Ratings has issued a presale report for Citigroup Commercial Mortgage Trust 2016-P5, Commercial Mortgage Pass-Through Certificates, Series 2016-P5.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$35,196,000 class A-1 'AAAsf'; Outlook Stable;

--$96,088,000 class A-2 'AAAsf'; Outlook Stable;

--$220,000,000 class A-3 'AAAsf'; Outlook Stable;

--$246,197,000 class A-4 'AAAsf'; Outlook Stable;

--$44,722,000 class A-AB 'AAAsf'; Outlook Stable;

--$720,185,000a class X-A 'AAAsf'; Outlook Stable;

--$82,569,000a class X-B 'A-sf'; Outlook Stable;

--$77,982,000 class A-S 'AAAsf'; Outlook Stable;

--$41,284,000 class B 'AA-sf'; Outlook Stable;

--$41,285,000 class C 'A-sf'; Outlook Stable;

--$45,871,000b class D 'BBB-sf'; Outlook Stable;

--$45,871,000ab class X-D 'BBB-sf'; Outlook Stable;

--$21,789,000b class E 'BB-sf'; Outlook Stable.

(a) Notional amount and interest-only.

(b) Privately placed and pursuant to Rule 144A.

The expected ratings are based on information provided by the issuer as of Sept. 24, 2016. Fitch does not expect to rate the $14,909,000 class F and $32,110,420 class G.

The certificates represent the beneficial ownership interest in the trust, primary assets of which are 49 loans secured by 73 commercial properties having an aggregate principal balance of approximately $917.4 million as of the cut-off date. The loans were contributed to the trust by Citigroup Global Markets Realty Corp., Starwood Mortgage Capital LLC, Barclays Bank PLC and Macquarie US Trading LLC d/b/a Principal Commercial Capital.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 78.4% of the properties by balance and cash flow analysis of 82.1% of the pool.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.21x, a Fitch stressed loan-to-value (LTV) of 105.8%, and a Fitch debt yield of 9.12%. Fitch's aggregated net cash flow represents a variance of 11.72% to issuer cash flows.

KEY RATING DRIVERS

Lower Fitch Leverage: The pool's leverage statistics are lower than those of other recent Fitch-rated, fixed-rate multiborrower transactions. The pool's Fitch DSCR and LTV of 1.21x and 105.8%, respectively, are better than the YTD 2016 average Fitch DSCR and LTV of 1.18x and 106.5%. Excluding credit-opinion loans, the pool's Fitch DSCR and LTV are 1.18x and 110.4%, respectively. Comparatively, the YTD 2016 average DSCR and LTV of Fitch-rated deals, excluding credit-opinion and co-op loans, are 1.14x and 110.2%, respectively.

Investment-Grade Credit Opinion Loans: Two loans representing 8.99% of the pool are credit opinion loans. Easton Town Center (4.90%) has an investment-grade credit opinion of 'A+sf*' on a stand-alone basis. The loan is a 1.3 million-sf shopping complex that is 96.6% occupied by 212 tenants. Vertex Pharmaceuticals (4.09%) has an investment-grade credit opinion of 'BBB-sf*' on a stand-alone basis. The Vertex loan is secured by a 1.1 million-sf office building that is 95.5% occupied by Vertex Pharmaceuticals, a global biotechnology and pharmaceutical company.

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 9.3% below the most recent year's net operating income (NOI; for properties for which a full-year NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates.

Fitch evaluated the sensitivity of the ratings assigned to CGCMT 2016-P5 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'BBB-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on page 12.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Fitch was provided with third-party due diligence information from KPMG LLP. The third-party due diligence information was provided on Form ABS Due Diligence-15E and focused on a comparison and re-computation of certain characteristics with respect to each of the mortgage loans. Fitch considered this information in its analysis and the findings did not have an impact on the analysis. A copy of the ABS Due Diligence Form-15E received by Fitch in connection with this transaction may be obtained through the link contained on the bottom of the related rating action commentary.