(The following statement was released by the rating agency)
TOKYO, September 04 (Fitch) Fitch Ratings has affirmed GK
MLOX3's class C and D
notes due June 2015. The transaction is a Japanese
multi-borrower type CMBS
securitisation. The rating actions are as follows:
JPY1.13bn* class C notes affirmed at 'BBsf''; Outlook Stable
JPY1.78bn* class D notes affirmed at 'CCsf''; Recovery Estimate
*as of 3 September 2014
KEY RATING DRIVERS
The affirmation of the class C notes reflects further principal
repayment of the
underlying loan and Fitch's view that full redemption of the
notes is likely.
Since the previous rating action in September 2013, two of six
backing the remaining defaulted loan have been sold at higher
values than Fitch
had expected. This contributed to further repayment of the class
C notes. Fitch
believes the remaining properties will be sold by the legal
final maturity and
expects the associated sale proceeds to be sufficient to repay
the class C notes
Fitch has revised downwards its property valuation for one out
of the four
remaining collateral properties, reflecting the collateral
weaker-than-expected cash flow performance. However, this has
been offset by the
repayment so far.
The affirmation of the class D notes reflects Fitch's view that
remains probable for this class.
A significant further delay in workout activities, which could
push back the
full redemption of the class C notes closer to their legal final
result in negative rating action on the notes.
The rating of the class D notes is sensitive to the sales values
remaining properties as well as any delay in the disposition of
properties, with negative rating action likely as legal final
Fitch assigned ratings to this transaction in September 2007.
was initially a securitisation of five loans backed by 25
beneficiary interests. It is currently backed by one defaulted
loan, which is in
turn backed by four properties.
Lead Surveillance Analyst
+81 3 3288 2692
Fitch Ratings Japan Limited
Kojimachi Crystal City East Wing 3rd Floor
4-8 Kojimachi, Chiyoda-ku, Tokyo 102-0083
+81 3 3288 2631
Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,
Additional information is available at www.fitchratings.com.
The sources of information used to assess these ratings were the
Asset Management & Loan Services Corporation and the note
issuer, GK MLOX3.
Applicable criteria, 'Global Structured Finance Rating
Criteria', dated 4 August
2014; 'Criteria for Rating CMBS in Asia-Pacific', dated 2 May
'Counterparty Criteria for Structured Finance and Covered
Bonds', dated 14 May
2014; are available at www.fitchratings.com.
Related research, 'Structured Finance Recovery Estimates for
Securities', dated 18 November 2011; is available at
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Criteria for Rating CMBS in Asia-Pacific
Counterparty Criteria for Structured Finance and Covered Bonds
Structured Finance Recovery Estimates for Distressed Securities
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