KEY RATINGS DRIVERS
The affirmation is the result of stable performance of the two collateral properties as well as the credit worthiness of the tenant. The sole tenant at both properties, Danaher Corporation, is an investment grade-rated entity that operates five distinct business segments which specialize in the manufacturing, design, and marketing of products and services focused in the life sciences industry.
The Stable Outlook reflects increasing credit enhancement in association with loan amortization. In addition, Danaher Corporation continues to use both facilities as business critical locations. The company has added staffers to these locations steadily since 2012. The lease payments cover the debt service for the life of the transaction and credit enhancement will continue to increase due to loan amortization.
The loans are secured by two single-tenant office/research and development facilities, located in
The loan remains current on its principal and interest payments. As part of its analysis, Fitch took the current in-place rents with an adjustment for market vacancy, management fees, and assumed capital expenditures and leasing costs in order to derive a normalized operating cash flow. The resulting stressed debt service coverage ratio, which gives credit for amortization and is based upon Fitch's stressed cash flow and a debt service constant of 9.66%, is 1.55 times (x).
As of the
Fitch has affirmed the following rating:
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
Global Structured Finance Rating Criteria
Source: Fitch Ratings
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