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Fitch to Rate CSMC Trust 2014-ICE Commercial Mortgage Pass-Through Certificates, Series 2014-ICE

May 28, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has issued a presale report on CSMC Trust 2014-ICE Commercial Mortgage Pass-Through Certificates, Series 2014-ICE.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$405,000,000 class A 'AAAsf'; Outlook Stable;

--$405,000,000 class X1-CP 'AAAsf'; Outlook Stable;

--$405,000,000 class X1-NCP 'AAAsf'; Outlook Stable;

--$250,000,000 class X2-CP 'BBB-sf'; Outlook Stable;

--$250,000,000 class X2-NCP 'BBB-sf'; Outlook Stable;

--$95,000,000 class B 'AA-sf'; Outlook Stable;

--$71,000,000 class C 'A-sf'; Outlook Stable;

--$84,000,000 class D 'BBB-sf'; Outlook Stable.

* Interest-only class X1-CP and X1-NCP are equal to the notional balance of class A. Interest-only class X2-CP and X2-NCP are equal to the notional balance of class B, class C, and class D.

The expected ratings are based on the information provided by the issuer on May 24, 2014.

The certificates represent the beneficial interest in the trust that holds a $655 million loan secured by 42 temperature-controlled warehouses located in 16 states across the U.S. The loan is sponsored by Lineage Logistics Holdings, LLC and was originated by Column Financial, Inc. and Goldman Sachs Mortgage Company.

KEY RATING DRIVERS

Critical Aspect of Food Distribution Supply Chain: Temperature-controlled warehouse providers are an integral component connecting food producers with their end customers.

Durability of Income: The portfolio has demonstrated resilient cash flows and occupancy levels throughout various economic cycles.

Experienced Sponsorship with Strong Market Share: The sponsor is the second largest global owner/operator of cold storage facilities; dominant market share minimizes pricing pressure from competition.

Diverse Tenancy and Locations: The portfolio includes over 400 customers, with the largest representing 8.4% of the 2013 total revenue and investment-grade tenants representing over 20% of the 2013 total revenue. The portfolio consists of 42 properties in 16 states with the largest concentrations in Texas, Illinois, and Georgia. The largest property according to 2013 revenue accounts for 9.6% of the pool (by allocated loan balance).

RATING SENSITIVITIES

Fitch found that the pool could withstand a 66% decline in value and an approximately 61.1% decrease in the most recent actual cash flow prior to experiencing $1 of loss to any 'AAAsf' rated class.

Fitch evaluated the sensitivity of the ratings of class A (rated 'AAAsf' by Fitch) and found that a 18.2% decline in Fitch NCF would result in a one category downgrade, while a 38.7% decline would result in a downgrade to below investment grade. The Rating Sensitivity section in the presale report includes a detailed explanation of additional stresses and sensitivities.

Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (September 2013)

--Global Structured Finance Rating Criteria (May 2013)

--Rating Criteria for U.S. Commercial Mortgage Servicers (January 2014)

--Counterparty Criteria for Structured Finance Transactions and Covered Bonds (May 2013)

Applicable Criteria and Related Research: CSMC Trust 2014-ICE (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749091

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Rating Criteria for U.S. Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=725537

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=832005

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Tamon Hayes

Director

+1-212-908-9169

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Surveillance Analyst

Brook Sutherland

Director

+1-312-606-2346

or

Committee Chairperson

Daniel Chambers

Managing Director

+1-212-908-0782

or

Media Relations

Sandro Scenga, +1-212-908-0278

sandro.scenga@fitchratings.com


Source: Fitch Ratings


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