KEY RATING DRIVERS
The downgrades to classes D and E are attributable to prior interest shortfalls as well as the continued risk of interest shortfalls should additional loans transfer to the special servicer. The previous interest shortfalls were predominantly related to the
Although these classes have high credit enhancement due to amortization and loan payoffs, several larger loans are underperforming with maturities in 2014 and may transfer to the special servicer.
The upgrade and affirmations are based on increased credit enhancement and continued paydown of the underlying collateral pool.
Fitch modeled losses of 27.5% of the remaining pool, including
The largest contributor to expected losses is the specially-serviced
The next largest contributor to expected losses is the specially-serviced
Rating Outlooks on classes A-6 through F are Stable as no additional rating changes are expected due to increasing credit enhancement which offsets concerns with concentration and the potential for maturity defaults. The Rating Outlook on class G is Negative as the class may be subject to a downgrade if there is further deterioration to the pool should loans transfer to special servicing or expected losses increase. Additional downgrades to the distressed classes (those rated below 'B') are expected as losses are realized.
Fitch upgrades the following classes as indicated:
Fitch downgrades the following classes and removes them from Rating Watch Negative:
Fitch affirms the following class and removes it from Rating Watch Negative:
Fitch affirms the following classes and assigns Recovery Estimates (RE) as indicated:
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' (
--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions' (
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions
Source: Fitch Ratings
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