News Column

Fitch Affirms the Remaining Distressed Classes of DLJ 2000-CKP1

June 18, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed four distressed classes of DLJ Commercial Mortgage Corp (DLJ) commercial mortgage pass-through certificates series 2000-CKP1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect Fitch's high expected losses and the concentrated nature of the pool with only five loans remaining. Two of the three non-specially serviced loans (50.8%) have balloon maturity dates in 2014 and 2015. The remaining non-specially serviced loan is a fully amortizing loan with projected maturity date of October 2020. Of the two specially serviced assets (41.5%), one is in foreclosure and the other is real estate owned (REO).

Fitch modeled losses of 30.9% of the remaining pool; expected losses on the original pool balance total 5.9%, including $71.2 million (5.5% of the original pool balance) in realized losses to date.

As of the May 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.7% to $16.7 million from $1.29 billion at issuance. No loans are defeased. Interest shortfalls are currently affecting classes B-5 through C.

The largest contributor to expected losses is secured by a 117,340 square foot (sf) industrial property in Wayne Township, NJ (17.4% of the pool). The loan was transferred to the special servicer in July 2010 due to its pending maturity date of in August 2010. The special servicer has begun the foreclosure process and continues to pursue its legal rights through litigation. The property is 100% occupied at this time and the next court date is scheduled for late June.

The next largest contributor to expected losses is a REO 106 unit retirement community in Great Falls, MT (8%). The loan transferred to the special servicer in January 2008 due to the borrower's failure to pay off the loan at maturity. Motion for summary judgment for foreclosure was granted in December 2012. Occupancy was 51% as of April 2013. The property is currently being marketed for sale with a projected disposition scheduled for July.

RATING SENSITIVITY

Class B-4 is expected to remain at 'Csf' due to high expected losses, high concentration risk, and poor historical asset performance.

Fitch affirms the following classes as indicated:

--$12.2 million class B-4 at 'Csf', RE 95%;

--$4.5 million class B-5 at 'Dsf', RE 0%;

--$0 million class B-6 at 'Dsf', RE 0%;

--$0 million class B-7 at 'Dsf', RE0%.

The class A-1A, A-1B, A-2, A-3, A-4, B-1, B-2, and B-3 certificates have paid in full. Fitch does not rate the class C certificates. Fitch previously withdrew the rating on the classes B-8, B-9 and the interest-only class S certificates.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=835246

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

Jay Bullie, +1 312-368-2079

Associate Director

Fitch Ratings, Inc.

70 W. Madison Street

Chicago, IL 60602

or

Committee Chairperson

Mary MacNeill, +1 212-908-0785

Managing Director

or

Media Relations:

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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