OREANDA-NEWS. Fitch Ratings has taken rating action on Taurus CMBS No. 2 S.r.l.'s floating rate notes due 2019 as follows:

EUR0m class F (IT0003957054) downgraded to 'Dsf' from 'Csf'; Recovery Estimate (RE) 0%; rating withdrawn
EUR0m class G (IT0003957062) affirmed at 'Dsf'; RE0%; rating withdrawn

The transaction closed in 2005 and was originally the securitisation of four commercial mortgage loans originated by Merrill Lynch's Milan branch. Following the prepayment of three loans after closing (and the prepayment funds applied at the end of the traditional 18-month lockout period in Italian transactions), only one loan remained, Berenice, accounting for 40% of the original balance.

KEY RATING DRIVERS
The downgrade of the class F notes and affirmation of the class G notes reflects the final recovery determination that occurred at the January 2015 interest payment date (IPD) distribution.

The last remaining loan, EUR34.7m Berenice, prepaid in full in December 2014. While the borrower met all due amounts (including interest and costs), transaction costs surged (as a percentage of loan interest/balance prior to repayment) due to the wind-up of the transaction and the concentration of final invoices at the January 2015 IPD. No interest was paid to any of the notes due to the escrowing of junior principal for payment of issuer expenses, causing a non-accruing interest amount on the tranche F

Fitch is withdrawing the ratings of Taurus CMBS No. 2 S.r.l. as the issuer has defaulted. Accordingly, Fitch will no longer provide ratings or analytical coverage for Taurus CMBS No. 2 S.r.l.

RATING SENSITIVITIES
Not applicable

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 asset pool 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 asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Investor report as of the January 2015 IPD