S&P: One Rating Raised, One Affirmed On Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6
Our rating actions follow our analysis of the transaction, primarily using ourcriteria for rating U. S. and Canadian CMBS transactions, which included a review of the credit characteristics and performance of the remaining loans inthe pool, the transaction's structure, and the liquidity available to the trust.
We raised our rating on class H to reflect our expectation of the available credit enhancement for this class, which we believe is greater than our most recent estimate of necessary credit enhancement for the respective rating level. The upgrade also follows our views regarding the collateral's current and future performance, available liquidity support, interest shortfall history, and the trust balance's significant reduction.
We affirmed our 'CCC - (sf)' rating on class J to reflect accumulated interest shortfalls that have been outstanding for 11 consecutive months. Based on our analysis, we expect the accumulated interest shortfalls to be repaid in the near term. According to the August 2016 trustee remittance report, the trust incurred interest shortfalls totaling $67,335 due to other expenses. The current interest shortfalls affected classes subordinate to and including class J. From our review of the trustee remittance reports from the periods between October 2015 and August 2016, other expenses have affected the trust, ranging between $22,214 and $116,611 per month, except in March 2016 and July 2016.
As of the Aug. 15, 2016, trustee remittance report, the collateral pool balance was $14.6 million, which is 1.3% of the pool balance at issuance. The pool currently includes 13 loans, down from 150 loans at issuance. There are currently no loans with the special servicers, four ($5.4 million, 37.2%) are defeased and five ($5.8 million, 39.8%) are on the master servicer's watchlist. The master servicer, Wells Fargo Bank N. A., reported year-end 2015 financial information for 100.0% of the nondefeased loans in the pool.
Excluding the defeased loans, we calculated a 1.24x S&P Global Ratings weighted average debt service coverage and 15.1% S&P Global Ratings weighted average loan-to-value ratio using a 7.96% S&P Global Ratings weighted average capitalization rate.
To date, the transaction has experienced $19.9 million in principal losses, or1.8% of the original pool trust balance.