OREANDA-NEWS. Fitch Ratings has taken various rating actions on already distressed U. S. commercial mortgage-backed securities (CMBS) bonds. Fitch downgraded 15 bonds in nine transactions to 'D', as the bonds have incurred a principal write-down. The bonds were all previously rated 'C', which indicates that losses were inevitable. Of these 15 bonds downgraded to 'D', the ratings on three of the classes (within one transaction) have simultaneously been withdrawn as the only remaining ratings in the transaction are now 'D'; as a result the ratings are considered immaterial.

Fitch has also withdrawn the ratings on nine classes within three transactions as a result of realized losses. The trust balances have been reduced to $0 or have experienced non-recoverable realized losses and are no longer considered by Fitch to be relevant to the agency's coverage.


Today's downgrades are limited to just the bonds with write-downs. Any remaining bonds in these transactions have not been analyzed as part of this review.

A spreadsheet detailing Fitch's rating actions on the affected transactions is available at 'www. fitchratings. com' by performing a title search for: 'Fitch Downgrades or Withdraws Ratings on Distressed Classes in 11 U. S. CMBS Transactions', or by clicking on the link above.


While the bonds that have defaulted are not expected to recover any material amount of lost principal in the future, there is a limited possibility this may happen. In this unlikely scenario, Fitch would further review the affected classes.


No third third-party due diligence was provided or reviewed in relation to this rating action.