Fitch Affirms CMAC 1998-C2
KEY RATING DRIVERS
The pool is concentrated with only 31 of the original 512 loans remaining; the pool has experienced stable performance and continued paydown since Fitch's last rating action. The affirmation of class J is attributable to the continued likelihood that losses will occur as there is minimal credit enhancement.
There are no specially serviced loans; however, Fitch has designated three Fitch Loans of Concern (6.4%). As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.4% to \$44.9 million from \$2.89 billion at issuance. Per the servicer reporting, seven loans (19.8% of the pool) are defeased. Interest shortfalls are currently affecting classes K through M.
The largest contributor to expected losses is a loan secured by a 92-unit extended care facility in Sudbury, MA (4.1%). The property experienced a flood in 2010 rendering the first floor unusable until the repairs were completed in 2012. As of September 2014, occupancy at the facility improved to 92%. 2014 financials were not available and in 2013 the property experienced a net operating loss of \$154,406. Despite the underperformance of the property the loan remains current.
RATING SENSITIVITIES
Fitch affirms the following classes as indicated:
--\$44.2 million class J at 'Csf'; RE 95%;
--\$763,342 class K at 'Dsf'; RE 0%;
--\$0 class L at 'Dsf'; RE 0%.
The class A-1, A-2, A-3, B, C, D, E, G and H certificates have paid in full. Fitch does not rate the class F and M certificates. Fitch previously withdrew the rating on the interest-only class X certificates.
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