News Column

Fitch Affirms CSFB 2002-CP3

August 8, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed the remaining classes of Credit Suisse First Boston Mortgage Securities Corp. commercial mortgage pass-through certificates series 2002-CP3. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on limited recovery projections on the remaining loans. Five loans totaling $26.7 million remain in the pool. Two of the five (91.1% of the pool) are specially serviced and real estate owned (REO). Given significant expected losses on the two specially serviced REO properties, recovery estimates on class L are limited and classes M and N are expected to be reduced to zero due to anticipated losses. Interest shortfalls are currently affecting classes L through O.

The three performing loans (8.9%) are collateralized by multifamily properties, two of which are located in El Dorado, AR and one of which is located in Edmond, OK. All three balloon loans mature in 2017.

Fitch modeled losses of 89.3% of the remaining pool; expected losses on the original pool balance total 3.4%, including $6.9 million (0.8% of the original pool balance) in realized losses to date. As of the July 2014 distribution date, the pool has paid down 97% to $26.7 million from $895.7 million at issuance.

The largest loan in the pool and the largest contributor to expected losses is a 288,825 square foot (sf) retail center, known as River Street Square (48.4% of the pool) located in Elyria, OH in the Cleveland MSA. The loan transferred to special servicing in April 2012 due to monetary default after the borrower was unable to refinance the loan. The property's anchor tenant, Walmart, vacated the property prior to its lease expiration in August 2012. The special servicer reports that the property's current occupancy is 27%, down from 36% a year ago. The property became REO in November 2013 and is anticipated to be marketed for sale in an upcoming auction.

The second largest loan in the pool and the next largest contributor to expected losses is a 91,917 sf office building located in Troy, MI (42.7% of the pool). The loan transferred to special servicing in November 2010 and became REO in October 2011. The special servicer has appointed a property manager to manage and lease the property. The special servicer reports that the property's occupancy is currently at 72%, which has improved from 22.6% as of September 2012. The special servicer marketed the property for sale in July 2014 and anticipates a sale of the property to close later this year.

RATING SENSITIVITIES

The rating on class L may see a further downgrade if the performance of the remaining three performing properties deteriorates or if recoveries on the specially serviced loans are not sufficient to repay expenses and advances.

Fitch affirms the following classes as indicated:

--$2.2 million class L at 'CCCsf', RE 0%;

--$11.2 million class M at 'Csf', RE 0%;

--$4.5 million class N at 'Csf', RE 0%.

Classes A-1, A-2, A-3, A-SP, B, C, D, E, F, G, H, J and K have been paid in full. Fitch does not rate the class O certificates. Fitch previously withdrew the rating on the interest-only class A-X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 14, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=847835

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

Valerie Jayson

Associate Director

+1-312-368-3116

Fitch Ratings, Inc.

70 West Madison Street

Chicago, IL 60602

or

Committee Chairperson

Mary MacNeill

Managing Director

+1-212-908-0785

or

Media Relations

Sandro Scenga, New York, +1-212-908-0278

sandro.scenga@fitchratings.com


Source: Fitch Ratings


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