OREANDA-NEWS. Fitch Ratings has taken various rating actions on already distressed U.S. commercial mortgage-backed securities (CMBS) bonds. Fitch downgraded 20 bonds in 15 transactions to 'D', as the bonds have incurred a principal write-down. The bonds were all previously rated 'CCC', 'CC' or 'C', which indicates that losses were possible.

Fitch has also withdrawn the ratings on five classes in one deal as a result of realized losses.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. In cases where the last rated tranches of a transaction are in default and rated 'D', the defaulted ratings will be automatically withdrawn within 11 months of the date of the previous rating action.

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 16 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 class.

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