OREANDA-NEWS. Fitch Ratings has assigned the following ratings and Rating Outlooks for FREMF 2015-K44 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates series K-044.

FREMF 2015-K44 Multifamily Mortgage Pass-Through Certificates
--\$142,350,000 class A-1 'AAAsf'; Outlook Stable;
--\$1,185,063,000 class A-2 'AAAsf'; Outlook Stable;
--\$1,327,413,000* class X1 'AAAsf'; Outlook Stable;
--\$1,327,413,000* class X2-A 'AAAsf'; Outlook Stable;
--\$140,693,000 class B 'BBB+sf'; Outlook Stable;
--\$40,781,000 class C 'BBB-sf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates series K-044
--\$142,350,000 class A-1 'AAAsf'; Outlook Stable;
--\$1,185,063,000 class A-2 'AAAsf'; Outlook Stable;
--\$1,327,413,000* class X1 'AAAsf'; Outlook Stable.

*Notional amount and interest only.

Fitch did not rate the following classes of FREMF 2015-K44: the \$303,816,679 interest-only class X3, the \$303,816,679 interest only class X2-B, or the \$122,342,679 class D. Fitch did not rate the \$303,816,679 class X3 of the Structured Pass-Through Certificates, series K-044.

The certificates represent the beneficial interests in a pool of 76 commercial mortgages secured by 76 properties. Each class of the Freddie Mac Structured Pass-Through Certificates series K-044 (Freddie Mac SPC K-044) represents a pass-through interest in the corresponding class of securities issued by FREMF 2015-K44. Each Freddie Mac SPC K-044 security has the same designation as its underlying FREMF 2015-K44 class. All loans were originated specifically for Freddie Mac by approved Seller Servicers. The certificates follow a sequential-pay structure.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 68.5% of the properties by balance and cash flow analysis of 79.1% of the pool.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.05x, a Fitch stressed loan-to value (LTV) of 117.6%, and a Fitch debt yield of 7.22%. Fitch's aggregate net cash flow represents a variance of 8.04% to issuer cash flows.

KEY RATING DRIVERS

Fitch Leverage Exceeds 2014 Averages: The pool's Fitch DSCR and LTV are 1.05x and 117.6%, respectively. This represents higher leverage than for Fitch-rated, 10-year, K-series Freddie Mac deals in 2014. The 2014 average DSCR and LTV for Fitch-rated, 10-year, K-series Freddie Mac deals was 1.16x and 105.6%, respectively.

Above Average Property Quality: Five properties, accounting for 30.3% of the sample received a property quality grade of 'A-' or better, including three of the largest 10 loans. An additional 7% of the sample received a property quality grade of 'B+'.

Loan and Sponsor Concentration: The top 10 loans (including crossed-collateralized groups) comprise 39.4% of the pool, which is greater than the 2014 average of 31.8% for Fitch-rated, 10-year, K-series Freddie Mac deals. The largest two loans, Grand Plaza and the Village of Charleytowne, account for 11.4% of the pool and 4.7% of the pool, respectively. Loan sponsors have a combined 36 loans representing 48.5% of the pool. The largest sponsor concentration is 14.4% of the pool, while five sponsors have concentrations of greater than 4.2%.

Below-Average Pool Amortization: Within the pool, eight loans, representing 21.2% of the pool, are full-term interest only and 53 loans, representing 66.1% of the pool, have partial-term interest-only components. Based on the loans' scheduled maturity balance, the pool is expected to amortize 10.1% during the life of the transaction. This is one of the lowest amortization levels of recent Freddie Mac securitizations, which had an average amortization of 12.1% for 2014 Fitch-rated, 10-year, K-series Freddie Mac deals.

Healthcare and Student-Housing Concentration: Six loans (9.9%) are classified as student housing, seven loans (4.2%) are classified as independent living facilities and three loans (2.2%) are classified as assisted living facilities. These three multifamily sub classifications are considered more volatile and/or require more operational experience than traditional multifamily assets. The concentration of these three multifamily sub classifications in this transaction is higher than in past Freddie Mac transactions.

Low Mortgage Coupons: The pool's weighted average coupon is 3.9%, well below historical averages. Fitch accounted for increased refinance risk in a higher interest rate environment by reviewing an interest rate sensitivity that assumes an interest rate floor of 4.5% for multifamily properties, in conjunction with Fitch's stressed refinance rates, which were 8.6% on a weighted average basis.

RATING SENSITIVITIES

Fitch performed two model-based break-even analyses to determine the level of cash flow and value deterioration the pool could withstand prior to \$1 of loss being experienced by the 'BBB-sf' and 'AAAsf' rated classes. Fitch found that the FREMF 2015-K44 pool could withstand a 43.85% decline in value (based on appraised values at issuance) and an approximately 16.98% decrease to the most recent actual cash flow prior to experiencing \$1 of loss to any 'AAAsf' rated class. Additionally, Fitch found that the pool could withstand a 36.17% decline in value and an approximately 5.63% decrease in the most recent actual cash flow prior to experiencing \$1 of loss to the 'BBB-sf' rated class.

Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report.

The Master Servicer is Wells Fargo National Association, rated 'CMS1-' by Fitch. The Special Servicer is KeyBank National Association, rated 'CSS2+, by Fitch.

The presale report is available at 'www.fitchratings.com.'