Fitch Upgrades 2 Classes of BSCMS 1999-WF2
KEY RATING DRIVERS
The upgrades reflect the increase in defeasance since Fitch's last review. Of the 25 loans remaining, 12 are defeased accounting for 67.4% of the pool balance. Class I and 94% of class J are covered by the defeased collateral. The affirmations to class K and L reflect realized losses. Fitch has not designated any of the non-defeased loans as Fitch Loans of Concern and no loans are in special servicing. All of the remaining loans are fully amortizing with maturity dates in year 2018 (57.4%) and 2019 (36.3%).
The pool has experienced \\$18.7 million (1.7% of the original pool balance) in realized losses to date. As of the March 2016 distribution date, the pool's aggregate principal balance has been reduced by 97.2% to \\$30.6 million from \\$1.08 billion at issuance. Interest shortfalls are currently affecting classes K through M.
The largest non-defeased loan is secured by a 46,115-square foot office property located in Mountain View, CA. According to the September 2015 rent roll, the property is 60% occupied after a GSA tenant occupying 20% of the net rentable area vacated upon their lease expiration in September 2015. The debt service coverage ratio as of year-end 2014 was reported to be 2.36x. Despite the low occupancy, the Fitch stressed loan-to-value (LTV) was calculated to be less than 20% due to the loan being fully amortizing. The loan matures in December 2018.
RATING SENSITIVITIES
The Stable Outlook on the class I and J reflect Fitch's Outlook on the rating of the U.S. government. All of class I and 94% of class J is fully covered by defeased collateral. Fitch expects both classes to remain at their current rating for the remaining life of the deal unless there is a significant performance decline to any of the non-defeased loans.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch upgrades the following classes:
--\\$6.9 million class I to 'AAAsf' from 'Asf'; Outlook Stable;
--\\$9.5 million class J to 'AAAsf' from 'BBsf'; Outlook Stable.
Fitch affirms the following classes:
--\\$7 million class K at 'Dsf'; RE 95%;
--\\$0 class L at 'Dsf'; RE 0%.
The class A-1, A-2, B, C, D, E, F, G and H certificates have paid in full. Fitch does not rate the class M certificates. Fitch previously withdrew the rating on the interest-only class X certificates.
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