Fitch Affirms Morgan Stanley 1999-FNV1
KEY RATING DRIVERS
The affirmation of class K reflects stable performance since Fitch's last rating action, including the high concentration of defeased collateral as two (90.2% of the pool) of the remaining three loans are defeased. The remaining non-defeased loan and one defeased loan (41.7%) mature in 2018. The other defeased loan (58.3%) has an anticipated repayment date in 2018 and final maturity in 2023.
As of the August 2016 distribution date, the pool's collateral balance has paid down over 99% to $3.2 million from $632.1 million at issuance. The pool has incurred 4% in losses to date. In addition, there are $4 million in outstanding unpaid interest shortfalls to classes L through O. No classes are currently incurring interest shortfalls; however, the remaining classes have at total of $4 million in accrued interest shortfalls.
The remaining non defeased, $315,453 fully-amortizing loan is collateralized by a mixed use property located in Houston, TX. The collateral includes and small grocery store and mobile home park. As of year-end (YE) 2015, the debt service coverage ratio was 4.30x. The loan matures in May 2018.
Rating Outlook for class K remains stable as it is fully covered by defeased collateral and is expected to be fully repaid. The remaining classes rated 'D' will be affirmed in the future as losses have been incurred.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
Fitch affirms the following classes:
--$2.3 million class K at 'AAAsf'; Outlook Stable;
--$938,603 class L at 'Dsf'; RE 90%.
Classes M and N also are affirmed at 'Dsf'; RE 0% due to full losses already incurred. Class O, also reduced to zero due to realized losses, was not rated by Fitch. Classes A-1 through J have paid in full, and class X was previously withdrawn.