KEY RATING DRIVERS
The affirmations are the result of portfolio performance consistent with Fitch issuance expectations. As of year-end (YE) 2013, the servicer-reported net cash flow (NCF) debt service coverage ratio (DSCR) was 2.15x compared to a 2.12x Fitch stressed DSCR at issuance. As of YE 2013, the servicer reported portfolio occupancy was 74% compared to 77% at issuance. The portfolio NCF has trended down over the last few years, declining by approximately 5% per year since 2011. These declines have been offset by amortization of 8.4% since issuance combined with conservative issuance cash flow stresses by Fitch.
The loan is expected to mature in
The Stable Rating Outlooks indicate that rating changes are unlikely over the next one to two years. Should occupancy or portfolio cash flow deteriorate materially, downgrades are possible. Upgrades are unlikely given the specialized nature of the collateral and sponsor concentration.
The transaction represents a securitization of the beneficial interest in a 10-year loan, cross-collateralized first lien mortgage secured by 53 temperature-controlled warehouses (also referred to as cold storage facilities) owned collectively by three property companies (the PropCo borrowers). The collateral for the note also includes the PropCo borrowers' interest in the leases and rents, three operating companies (the OpCo borrowers) interest in the handling fees and contract rights in the properties, and the assignment of the collateral accounts and the rate cap.
Proceeds from the notes, together with additional equity, were used by the sponsor,
Fitch has affirmed the following classes:
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (
Global Structured Finance Rating Criteria
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
Source: Fitch Ratings
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