OREANDA-NEWS. September 21, 2015.  Fitch Ratings has affirmed all classes of Cafes 1 Trust's trust beneficiary interests (TBIs) due May 2018. The transaction is a Japanese single-borrower type CMBS securitisation. The rating actions are as listed below:

JPY2.2bn* Class A-1 TBIs affirmed at 'AAsf'; Outlook Stable
JPY27.1bn* Class A-2 TBIs affirmed at 'AAsf'; Outlook Stable
JPY6.4bn* Class B TBIs affirmed at 'Asf'; Outlook Stable
JPY3bn* Class C-1 TBIs affirmed at 'BBsf'; Outlook Stable
JPY3.4bn* Class C-2 TBIs affirmed at 'BBsf'; Outlook Stable
JPY1bn* Class D-1 TBIs affirmed at 'Bsf'; Outlook Stable
JPY5.6bn* Class D-2 TBIs affirmed at 'Bsf'; Outlook Stable
*as of 17 September 2015

KEY RATING DRIVERS
The affirmations and Stable Outlooks of the class A-1 to D-2 TBIs reflect Fitch's view that the current ratings continue to be supported, given Fitch's conservative valuation of the single collateral property. Fitch's assumed cash flow is based on the market trends of the rental rates and vacancies in Japan's office properties with similar characteristics to the collateral from a mid- to long-term perspective.

Fitch has observed some improvement in the market indices related to the subject property compared with a few years ago. Given this, Fitch has slightly raised its cash flow assumption from that assumed at the previous rating action in October 2014. Still, the agency's revised cash flow assumption remains lower than the in-place cash flow, which is likely to be stable in the near future. Furthermore, Fitch applied a higher cap rate for the property than that for comparable properties to take into account higher stress, which may be caused by the shorter time to the loan maturity date.

RATING SENSITIVITIES
The ratings on the TBIs are sensitive to Fitch's property valuation. The class A-1 and A-2 TBIs would be able to maintain 'AAsf' ratings even if the agency's current estimated value is lowered by 10%. In contrast, the class D-1 and D-2 TBIs would not be able to maintain 'Bsf' ratings if Fitch's property valuation is revised downward by 5%.

DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the underlying loan and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third-party assessment of the underlying loan information or conducted a review of loan origination files as part of its ongoing monitoring.

Fitch assigned ratings to this transaction in July 2006. The transaction is a securitisation of a loan backed by a condominium-ownership interest to a class A office located in Chuo-ku, Tokyo.