OREANDA-NEWS. April 28, 2015. Fitch Ratings has downgraded Taurus CMBS (Germany) 2006-1 Plc's class A and B notes and affirmed the class C and D notes. Fitch has subsequently withdrawn the ratings as the issuer is now in default. Accordingly, Fitch will no longer provide ratings or analytical coverage for Taurus CMBS (Germany) 2006-1 Plc.

EUR46m class A (XS0257712579) downgraded to 'Dsf' from 'CCCsf'; Recovery Estimate (RE) 100%; withdrawn
EUR29.9m class B (XS0257714435) downgraded to 'Dsf' from 'Csf'; RE30%; withdrawn
EUR1.8m class C (XS0257715242) affirmed at 'Dsf'; RE0%; withdrawn
EUR0m class D (XS0257715838) affirmed at 'Dsf'; RE0%; withdrawn

The transaction was originally the securitisation of 10 commercial mortgage loans with an aggregate balance of EUR582.9m. The loans were secured on 36 office, retail and industrial assets and a multifamily housing portfolio consisting of approximately 2,400 residential units, all located in Germany. In April 2015, two loans remained.

KEY RATING DRIVERS
The downgrades reflect the issuer's failure to repay the rated notes by bond maturity on 22 April 2015. The REs look through bond maturity and reflect Fitch's view on ultimate recoveries from the ongoing asset sales.

The two remaining loans are in special servicing. The EUR41.6m Bremen collateral, a shopping centre located in Bremen, Germany, received interest from three potential buyers. However, the sales process has been delayed by a defective building permission which needs to be replaced prior to a sale or required construction work to improve occupancy, income and value. The special servicer estimated three to six months to receive the permission and another one to three months to finalise a sale. Fitch expects a significant loss.

The EUR36.2m Walzmuehle loan is in advanced sales proceedings. The special servicer stated that the sales price will be below the senior loan amount but roughly in line with the valuation (the reported senior loan-to-value is 100%). Fitch expects a moderate loss, in line with its December 2014 rating action.