(Repeat for additional subscribers)
July 11 (The following statement was released by the rating agency)
Fitch Ratings has affirmed five classes of Commercial Capital Access One, Series 3 (CCA One, Series 3) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to stable performance and continued pay down since the last rating action. The pool has experienced $32.0 million (7.4% of the original pool balance) in realized losses to date. There are 25 loans remaining in the pool; Fitch has identified three (18.8% of the pool) Loans of Concern, which includes one specially serviced asset (12.9% of the pool).
As of the June 2014 distribution date, the pool's aggregate principal balance has been reduced by 83.6% to $71.2 million from $433.7 million at issuance. Of the remaining pool, six loans (18% of the pool) are multifamily properties that had low-income housing tax credits at issuance. All of them are now past their compliance periods. Additionally, six loans (18% of the pool) are covered by a SunAmerica limited guaranty. SunAmerica's parent company, AIG, is rated 'A-' with a Stable Outlook by Fitch. The guaranty requires Sun America to either pay the special servicer an amount equal to any realized losses arising from covered specially serviced loans, or to purchase the covered loans directly from the trust at par if they become distressed.
The largest loan of the pool (19.3% of the pool) is secured by a 250,428 square foot (sf) office property located in Burlington, MA (Boston MSA). Aspen Technologies is expected to be vacating their current 75,000 sf corporate headquarters for a larger space in Bedford, MA. The move is scheduled for the end of 2014 and per the December 2013 rent roll the tenant accounts for 30% NRA (47% base rent) at the property. To date, updated leasing status for the space has not been received. Fitch will continue to monitor the leasing status of the property. As of year-end (YE) 2013 occupancy and DSCR was 95.4% and 1.44x, respectively. The loan remains current.
The second largest loan in the pool, Denver Mart (12.9%), is in special servicing. The property is located in Denver, CO and is comprised of three buildings totaling 790,200 gross sf of showroom, exhibition, and display space. The loan transferred to special servicing in 2011 after the borrower filed for bankruptcy. The court has recently dismissed the bankruptcy claim and property performance has improved in recent years. As of YE 2012 occupancy and DSCR was 85.4% and 1.03x, respectively, compared to 93.3% and 1.47x as of YE 2013. The loan is current.
The ratings of classes 3C and 3D are expected to remain stable due to increasing credit enhancement. Despite high credit enhancement upgrades are not expected due to the concentrated pool and credit characteristics of the remaining collateral, including the uncertainty in the leasing status of the largest loan and binary risk associated with single-tenant exposure (17.8% of the pool). The distressed classes (those rated below 'B') are subject to further downgrades as losses are realized. In addition, class 3E may be subject to further rating actions should realized losses be greater than Fitch's expectations.
Fitch affirms the following classes:
--$31.7 million class 3C at 'AAsf'; Outlook Stable;
--$19.5 million class 3D at 'BBB+sf'; Outlook Stable;
--$6.5 million class 3E at 'BBBsf'; Outlook Negative;
--$10.8 million class 3F at 'CCCsf'; RE 100%;
--$2.7 million class 3G at 'Dsf'; RE 10%.
The class 3A-1, 3A-2, 3X and 3B certificates have paid in full.
Fitch does not rate the class 3H certificates.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports