KEY RATING DRIVERS
The downgrades to classes F through H are the result of interest shortfalls currently affecting these classes as well as the continued risk of interest shortfalls should additional loans transfer to the special servicer. Current interest shortfalls are predominantly related to the
Although these classes have high credit enhancement due to amortization and loan payoffs, several larger loans are underperforming and may transfer to the special servicer. As limited upcoming paydown is expected due to many loans' longer terms, additional interest shortfalls may affect these classes in the future.
The affirmations are based sufficient credit enhancement to support the current ratings.
Fitch modeled losses of 15% of the remaining pool, including
The largest contributor to expected losses is secured by a 102,310 square foot (SF) suburban office property located in
The next largest contributor to expected losses is secured by a 231,242 SF suburban office building located in
Rating Outlooks on classes C through H are Stable due to increasing credit enhancement and continued paydown. The Rating Outlook on class J is Negative as the class may be subject to a downgrade if there is further deterioration to the pool's cash flow performance and/or a decrease in value of the specially serviced loans. Additional downgrades to the distressed classes (those rated below 'B') are expected as losses are realized.
Fitch downgrades the following classes and removes them from Rating Watch Negative:
Fitch downgrades the following class and revises the Rating Outlook as indicated:
Fitch affirms the following classes and assigns Recovery Estimates (RE) as indicated:
The class A-1, A-2, B and X-2 certificates have paid in full. Fitch does not rate the class NR, BM-1, BM-2, BM-3, AC-1, AC-2 and AC-3 certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Source: Fitch Ratings
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