Fitch Affirms Providence Place Mall Pass-Through Certificates
--\$4.75 million class A-1 at 'AAAsf'; Outlook Stable;
--\$33.81 million class A-2 at 'AAAsf'; Outlook Stable.
KEY RATING DRIVERS
The certificates are secured by a PILOT (payments in lieu of taxes) lien on the property. The PILOT payments remain current and are senior to any debt on the underlying Providence Place Mall property including ground lease or mortgage payments. Affirmations are also warranted because the ratio of maximum exposure to the property value is extremely low. The next scheduled semi-annual payment is in July 2015.
The class A-1 amortizes while the class A-2 has negative amortization until Jan. 17, 2016, when it will begin amortizing. The scheduled outstanding balance will not exceed \$51.25 million (maximum exposure). The mall is sponsored by General Growth Properties (GGP), a publicly-traded retail REIT.
RATING SENSITIVITIES
The Rating Outlooks are expected to remain Stable through the term of the transaction. The transaction will benefit from additional deleveraging beginning in 2016.
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