KEY RATING DRIVERS
As of the
The affirmations of the distressed ratings are due to exceptionally high credit risk associated with the remaining asset,
The mall continues to face significant challenges related to trade area fundamentals, tenant retention and capital expenditure needs which will ultimately affect investor interest and the long-term viability of the asset. The immediate trade area for the subject property is considered rural and tertiary in nature and is confronting declining population trends with incomes below state and national levels. Additionally, weak retail sales are affecting progress on long-term tenant renewals, causing uncertainty for prospective investors. Management has extended the terms of several anchor tenants on a short-term basis; however, tenants have been reluctant to provide commitment to the location. In particular, major anchor tenants, representing 31.1% of the mall, have lease expirations by the end of 2016. The asset will eventually require additional capital expenditures and cosmetic renovation to remain competitive in the market.
The ratings of the remaining distressed classes (those rated below 'Bsf') are subject to further downgrade with the loss of any major tenant coupled with a prolonged hold period prior to disposition. Fitch anticipates significant losses based on current valuations of the asset and uncertainty related to anchor tenant renewal and future stabilization of the asset.
Fitch has affirmed the following classes as indicated:
The following classes, originally rated by Fitch, have paid in full: A-1, A-J1, A-J2, X-1, MOAX-1, MOAX-2, MOAX-3, B, C, D, E, F, MOA-1, MOA-2, N-PC, O-PC, P-PC, Q-PC, N-DEL and O-DEL.
Fitch does not rate the class A-J3, G, H and MOA-3 certificates.
In addition, Fitch previously withdrew the ratings on the interest-only classes X-2-DB, X-2-NOM, X-2-SG, X-3-DB, X-3-NOM and X-3-SG.
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate Transactions' (
Global Structured Finance Rating Criteria
Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate Transactions
Source: Fitch Ratings
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