Fitch Affirms DLJ 1998-CF2
KEY RATING DRIVERS
The affirmations are due to the relatively stable performance of the remaining pool and reflect the pool's high concentration (15 loans remaining).
As of the May 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.7% to \$14.3 million from \$1.11 billion at issuance. Approximately 87.8% of the pool is fully amortizing. Two loans (22.5% of the pool) are defeased and no loans are in special servicing. Fitch has designated two Fitch Loans of Concern (15.9%).
The largest loan in the pool (19.4%) is collateralized by a 224-unit multifamily property located in Savannah, GA. As of year-end (YE) 2014, the property was 96.1% occupied, up from 89.7% at YE 2013. The servicer-reported debt service coverage ratio (DSCR) increased to 1.34x from 1.21x during the same period.
Each of the Fitch Loans of Concern is secured by a Super 8 hotel located in Albuquerque, NM. The servicer-reported DSCR was well below 1.0x for each property as of YE 2014.
RATING SENSITIVITIES
The Negative Outlook for Class B-5 reflects the distressed performance of the Fitch Loans of Concern, pool concentration and single tenant risk exposure (25.6%). Class B-5 could be downgraded if expected losses increase.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action
Fitch has affirmed the following ratings:
--\$12.9 million class B-5 at 'BB+sf'; Outlook Negative;
--\$1.4 million class B-6 at 'Dsf'; RE 0%.
Classes A-1A through B-4 have paid in full. Fitch does not rate class C. Fitch previously withdrew the rating on class S.
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