OREANDA-NEWS. Fitch Ratings has affirmed Taurus 2015-1 IT S.r.l.'s
commercial mortgage backed securities as follows:

EUR189.2m Class A due February 2027 (ISIN: IT0005085615): affirmed at 'A+sf'; Outlook Stable
EUR21.1m Class B due February 2027 (ISIN: IT0005085664): affirmed at 'Asf'; Outlook Stable
EUR31.4m Class C due February 2027 (ISIN: IT0005085672): affirmed at 'BBBsf'; Outlook Stable
EUR21.2m Class D due February 2027 (ISIN: IT0005085680): affirmed at 'BBsf'; Outlook Stable

The transaction is a securitisation of three commercial real estate loans totalling EUR301.5m at closing. The loans were granted by Bank of America N.A., Milan Branch to three Italian limited liability companies and two Italian funds to finance the acquisition/refinance of certain Italian real estate assets: a portfolio of five office properties and four telecom exchanges (Calvino loan), two fashion outlet centres (Fashion District loan) and three retail galleries (Globe loan).

KEY RATING DRIVERS
The affirmation is driven by the stable performance of all three loans, in line with Fitch's expectations at closing in February 2015. The key metrics of the Fashion District and Globe loan remain stable while the Calvino loan has slightly deleveraged, despite a downwards revaluation. The slight reduction in credit risk for Calvino was expected at closing of the transaction.

The LTV of the Globe loan (EUR109.2m, or 41.5% of the pool), secured by three retail galleries in northern Italy, is unchanged at 55.0%, whilst the forward-looking debt service coverage ratio (DSCR) has slightly increased to 5.16x from 5.12x at closing. The performance of the collateral is constant, with no material movement in annual rent (EUR14.4m), an occupancy rate (97.7%) or weighted average lease term (WALT) to break (4.6 years).

The Fashion District loan (EUR80.7m; 30.7%) is secured by two fashion outlet centres in Mantova and Molfetta. The first LTV test date in February 2017 will be a useful indicator of performance of the collateral, which continues to suffer a high vacancy rate of 19.9% (concentrated in the Molfetta property as at closing).

The Calvino loan (EUR73.0m; 27.7%), originally secured by a portfolio of five office properties and four telecom exchanges, has improved following the sale of a telecom exchange in Torino for EUR32m. This is in line with its market value at closing (EUR32.1m), allowing for a principal repayment of EUR24.6m at the August 2015 interest payment date (IPD). As a result, the loan will remain compliant with its amortisation target (it will be below its maximum loan balance of EUR79.0m) at least until the May 2017 loan IPD.

Despite a like-for-like reduction in the market value of the Calvino portfolio by 3.2% following the June 2015 revaluation, the LTV has decreased to 62.8% from 63.6%. The Ivrea property fell in value by almost 30% after the main tenant, Vodafone (BBB+/Stable), initially indicated its intention to vacate the property. Since then it has expressed an interest in remaining in occupation and has started lease renegotiations with the borrower.

RATING SENSITIVITIES
A material change in the loan metrics (eg Calvino amortisation target, Fashion District first LTV test date in February 2017, the income profile or the occupancy rate of the collateral, etc) or in market conditions in the relevant markets (as monitored by Fitch on a quarterly basis) may lead to a change in the ratings.

Fitch estimate 'Bsf' debt proceeds of EUR263.0m.

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

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Transaction reporting provided by Mount Street Mortgage Servicing Limited as at the November 2015 IPD

REPRESENTATIONS AND WARRANTIES
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see Taurus 2015-1 IT S.r.l. - Appendix, dated 16 February 2015 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.