Fitch Upgrades ASC 1997-D5
KEY RATING DRIVERS
The upgrade of class B-1 is due to substantial defeasance proceeds and continued paydown from fully amortizing loans in the transaction.
As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 98% to \$35.4 million from \$1.79 billion at issuance. There are 15 loans remaining out of the original 155 loans from issuance. Interest shortfalls are currently affecting class B-2. Litigation matters remain outstanding.
Of the remaining loans, 13 are fully amortizing (96.6%) which includes eight loans that are defeased (89.2%). Loan maturities are primarily concentrated in 2017 (73.3%). There are no delinquent or specially serviced loans.
The rating Outlook for class B-1 remains stable based on defeasance proceeds coupled with increasing credit enhancement of the class. Upgrades have been limited given the uncertainty related to outstanding litigation outcomes and vulnerability to interest shortfalls.
Fitch upgrades the following class:
--\$28.6 million class B-1 to 'Asf' from 'BBsf'; Outlook Stable;
Fitch affirms the following class:
--\$5.6 million class B-2 at 'Dsf'; RE 15%.
Fitch does not rate classes B-7, B-7H and A-8Z. Classes A-1A, A-1B, A-1C, A-1D, A-1E, A-2, A-3, A-4, A-5, A-6, A-7, B-3SC and interest only class A-CS1 have paid in full. Additionally, Fitch has previously withdrawn the ratings on classes B-3, B-4, B-5 and B-6 and interest only class PS-1.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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