TEXT-S&P on 1166 Avenue of the Americas II 2005-C6

Tue Nov 20, 2012 4:55pm EST

OVERVIEW
     -- We affirmed our ratings on nine classes from 1166 Avenue of the 
Americas Commercial Mortgage Trust II's series 2005-C6, a U.S. CMBS 
transaction, and removed six of them from CreditWatch with positive 
implications, where we placed them on Sept. 5, 2012.  
     -- Concurrently, we raised our rating on class H and removed it from 
CreditWatch with negative implications from the same transaction due to a 
revision on the issuer credit rating on Marsh & McLennan Cos. At the same 
time, we revised our outlook on class H to stable. 
     -- The collateral in this stand-alone transaction consists of a $359.0 
million fixed-rate fully amortizing mortgage loan. 
     -- The affirmations reflect our analysis of the transaction, which 
included our revaluation of the collateral and follows our analysis of the 
transaction using our recently updated criteria for rating U.S. and Canadian 
CMBS transactions. 
 
NEW YORK (Standard & Poor's) Nov. 20, 2012--Standard & Poor's Ratings Services 
today affirmed its ratings on nine classes of commercial mortgage pass-through 
certificates from 1166 Avenue of the Americas Commercial Mortgage Trust II's 
series 2005-C6, a U.S. commercial mortgage-backed securities (CMBS) 
transaction and removed six of them from CreditWatch with positive 
implications, where we placed them on Sept. 5, 2012. Concurrently, we raised 
our rating on class H and revised our outlook on class H to stable and removed 
it from CreditWatch with negative implications from the same transaction (see 
list).  

We raised our rating on class H and revised our outlook to stable following a 
revision on the issuer credit rating on Marsh & McLennan Cos. (BBB/Stable/A-2) 
on Oct. 12, 2012, (see "Marsh & McLennan Cos. Ratings Raised To 'BBB' From 
'BBB-' On Improved Business And Financial Profiles; Outlook Stable," published 
Oct. 12, 2012). Marsh & McLennan Cos. and four of its operating subsidiaries 
leased 100% of the collateral office condominium unit. As a result, our 
ratings on the transaction are partially dependent on our credit rating on 
Marsh & McLennan Cos.

The affirmations follow our analysis of the transaction, using our recently 
updated criteria for rating U.S. and Canadian CMBS transactions, which was the 
primary driver of the rating actions. The analysis of stand-alone transactions 
is predominantly a recovery-based approach that assumes a loan default. 
Reflecting this approach, our property-level analysis included a revaluation 
of the commercial office condominium unit, which consists of floors 22-44 
(excluding floor 33) of a 44-story, class A office building in midtown 
Manhattan, securing the mortgage loan in the trust. Based on our analysis, we 
derived our sustainable in place net cash flow, which was then divided by a 
capitalization rate of 6.25% to determine our expected-case value. This 
yielded a loan-to-value (LTV) ratio of 81.1% on the whole-loan balance. We 
also assessed the property as if it was 100% vacant and derived a stabilized 
(dark) value using market rent and vacancy, yielding a LTV ratio of 87.0% on 
the whole-loan balance. A full discussion of the methodologies employed in the 
property-level analysis can be found in 
""here
=7491472&rev_id=5&sid=1030356&sind=A&"," published Sept. 5, 2012. Given that 
Marsh & McLennan Cos.'s lease term is until Oct. 2035, we placed more emphasis 
on the expected-case value.

We based our analysis, in part, on a review of the master servicer's reported 
net operating income for the six months ended June 30, 2012 and year-end 2011. 
The collateral is currently 100% leased to Marsh & McLennan Cos. and four of 
its operating subsidiaries. The master servicer, Wells Fargo Bank N.A., 
reported a debt service coverage (DSC) of 1.15x on the whole-loan balance for 
the six months ended June 30, 2012. 

As of the Nov. 15, 2012, trustee remittance report, the mortgage loan in the 
trust has a balance of $359.0 million and is one of two mortgage loans 
(whole-loan balance of $423.5 million) securing the office condominium unit. 
The other mortgage loan totaling $64.5 million is in the LB-UBS Commercial 
Mortgage Trust 2005-C7 (LB-UBS 2005-C7) transaction. The LB-UBS 2005-C7 
mortgage loan is pari passu with a $241.6 million portion of the mortgage loan 
in the trust. The remaining $117.4 million of the mortgage loan in the trust 
is subordinate to the pari passu components. According to the transaction's 
documents, absent a payment application trigger event, principal payments are 
applied first to fully amortize the LB-UBS 2005-C7 mortgage loan. The mortgage 
loans amortize fully, pay interest on 5.701% per year, and mature on Oct. 11, 
2035. 


STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating 
relating to an asset-backed security as defined in the Rule, to include a 
description of the representations, warranties and enforcement mechanisms 
available to investors and a description of how they differ from the 
representations, warranties and enforcement mechanisms in issuances of similar 
securities. The Rule applies to in-scope securities initially rated (including 
preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reports included in this 
credit rating report are available at 
"RELATED CRITERIA 
 
     -- Rating Methodology And Assumptions For U.S. And Canadian CMBS, Sept. 
5, 2012
     -- CMBS Global Property Evaluation Methodology, Sept. 5, 2012
 
RELATED RESEARCH
     -- Industry Economic and Ratings Outlook: U.S. Commercial Real Estate 
Trends Are Improving And CMBS Performance Is Stabilizing, Nov. 5, 2012
     -- Marsh & McLennan Cos. Ratings Raised To 'BBB' From 'BBB-' On Improved 
Business And Financial Profiles; Outlook Stable, Oct. 12, 2012
     -- Application of CMBS Global Property Evaluation Methodology In U.S. And 
Canadian Transactions, Sept. 5, 2012
     -- The Application Of Standard & Poor's Revised U.S. And Canadian CMBS 
Criteria For The Sept. 5, 2012, CreditWatch Actions, Sept. 5, 2012
 
RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH POSITIVE

1166 Avenue of the Americas Commercial Mortgage Trust II
Commercial mortgage pass-through certificates series 2005-C6
              Rating
Class     To             From       
B         AA+ (sf)       AA+ (sf)/Watch Pos
C         AA- (sf)       AA- (sf)/Watch Pos
D         A (sf)         A (sf)/Watch Pos
E         A- (sf)        A- (sf)/Watch Pos
F         BBB+ (sf)      BBB+ (sf)/Watch Pos
G         BBB (sf)       BBB (sf)/Watch Pos

RATING RAISED AND REMOVED FROM CREDITWATCH NEGATIVE

1166 Avenue of the Americas Commercial Mortgage Trust II
Commercial mortgage pass-through certificates series 2005-C6
                   Rating
Class     To                    From       
H         BBB (sf)/Stable       BBB- (sf)/Watch Neg

RATINGS AFFIRMED

1166 Avenue of the Americas Commercial Mortgage Trust II
Commercial mortgage pass-through certificates series 2005-C6
Class     Rating       
A-1       AAA (sf)
A-2       AAA (sf)
A-3       AAA (sf)
FILED UNDER:
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