Fitch Affirms CMAC 1998-C2
KEY RATING DRIVERS
The pool has become increasingly concentrated with 29 loans remaining, the majority of which are fully amortizing. The pool has experienced 98.8% collateral reduction since issuance and the largest 10 loans make up 72.3% of the current pool balance. Two loans have paid out of the pool since the last rating action. There are no loans in special servicing and two loans (2.7% of the pool) are on the servicer's watchlist. Seven loans (23.1% of the pool) are fully defeased.
Fitch has identified one Loan of Concern, the Sudbury Pines Extended Care Facility (4.7% of the pool). The loan is secured by a 92-unit assisted living facility in Sudbury, Massachusetts. The subject was previously damaged by a flood, rendering many units unusable. Although repairs were completed nearly three years ago, the property has been slow to recover from the loss of occupancy. Historical cash flow reporting has shown volatile swings in the debt service coverage ratio (DSCR), from reported net operating income (NOI) coverage of 1.18x at YE2011 to -0.53x at YE2013 to 1.42x at YE2014, due to occupancy shifts as well as dramatic shifts in operating expenses. Fitch will continue to monitor this loan.
RATING SENSITIVITIES
One loan is the primary driver of Fitch's projected losses for the pool. An upgrade to the class J certificate is possible should the performance of this loan warrant such an action. Conversely, the class may be downgraded should any loss be realized.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch affirmed the following ratings:
--$33.7 million class J at 'Csf'; RE 95%;
--$765,059 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%.
The class A-1, A-2, A-3, B, C, D, E, G and H certificates have paid in full. Fitch does not rate the class F and M certificates. The rating on the interest-only class X certificate was previously withdrawn.
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