Fitch expects to rate the transaction and assign Outlooks as follows:
(a) Notional amount and interest only.
(b) Class A-S, class B, and class C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, class B, and class C certificates.
(c) Privately placed pursuant to Rule 144A.
The expected ratings are based on information provided by the issuer as of
The certificates represent the beneficial ownership in the trust, primary assets of which are 51 loans secured by 83 commercial properties having an aggregate principal balance of approximately
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 72.7% of the properties by balance, cash flow analysis on 71.9%, and asset summary reviews on 71.9% of the pool.
The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.16x, a Fitch stressed loan-to-value (LTV) of 100.4%, and a Fitch debt yield of 9.1%. Fitch's aggregate net cash flow represents a variance of 6.8% to issuer cash flows.
KEY RATING DRIVERS
Fitch Leverage: This transaction has slightly lower leverage than other recent Fitch-rated fixed-rate deals. The pool's Fitch LTV of 100.4% is below the 2013 average of 101.6%. However, excluding the credit opinion loan, the pool's Fitch LTV is 103.5%. The pool's Fitch DSCR of 1.16x is below the 2013 average of 1.29x. The conduit DSCR is 1.15x, excluding the credit opinion loans.
Pool Concentration: The pool is more concentrated by loan size and sponsor than average transactions from 2013, as evidenced by a loan concentration index (LCI) of 479 and sponsor concentration index (SCI) of 479. Also the 10 largest loans represent 58.6% of the total pool balance, which is higher than the average 2013 top 10 concentration of 54.5%.
High Retail Concentration: The pool has an above- average concentration of retail properties at 52.4%. Six of the 10 largest assets are retail properties. The average retail concentration in 2013 was 33.2%. The largest property type is retail (52.4%), followed by multifamily (13.9%) and hotel (11.9%).
Credit Opinion Loan: The largest loan in the pool,
Fitch performed two model-based break-even analyses to determine the level of cash flow and value deterioration the pool could withstand prior to
Key Rating Drivers and Rating Sensitivities are further described in the accompanying pre-sale report.
The master servicer will be Midland Loan Services, rated 'CMS1-' by Fitch. The special servicer will be
The presale report is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
--Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions (
--Global Structured Finance Rating Criteria (
--Criteria for Special-Purpose Vehicles in Structured Finance Transactions (
--U.S. Commercial Mortgage Servicer Rating Criteria (
--U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (
--Counterparty Criteria for Structured Finance Transactions (
Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions
Global Structured Finance Rating Criteria
Criteria for Special-Purpose Vehicles in Structured Finance Transactions — Effective
U.S. Commercial Mortgage Servicer Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Counterparty Criteria for Structured Finance and Covered Bonds
Jonathan Teichmann, +1 212-908-0862
Sashank Kakani, +1 212-908-0517
Eric Rothfeld, +1 212-908-0761
Source: Fitch Ratings
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