News Column

Fitch Affirms Americold 2010 LLC Trust, Series 2010-ART

August 14, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed all classes of Americold 2010 LLC Trust, commercial mortgage pass-through certificates, series 2010-ART. A complete list of rating actions is listed at the end of this release.

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 January 2021. The Fitch stressed loan-to-value (LTV) ratio is approximately 51.2% based on capitalization of the Fitch-adjusted net cash flow at a rate of 10.11%.

RATING SENSITIVITY

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, Americold Realty Operating Partnership, L.P. (Americold), to consummate the acquisition of all the non-Canadian facilities and operations of Versacold International Corporation (Versacold), a Canadian subsidiary, pay off existing debt secured by 30 properties included in the portfolio, and for general corporate purposes. The ratings reflect an analysis of the cash flows from the assets of the trust, not an assessment of the corporate default risk of the ultimate parent.

Fitch has affirmed the following classes:

--$110.7 million class A-1 notes at 'AAAsf'; Outlook Stable;

--$150.3 million class A-2-FX notes at 'AAAsf'; Outlook Stable;

--$87.6 million class A-2-FL notes at 'AAAsf'; Outlook Stable;

--$60 million class B notes at 'AAsf'; Outlook Stable;

--$62.4 million class C notes at 'Asf'; Outlook Stable;

--$82.6 million class D notes at 'BBB-sf'; Outlook Stable.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (August 2014);

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

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=851695

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

R. Brook Sutherland, +1-312-606-2346

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

Elizabeth Fogerty, New York, +1-212-908-0526

elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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