Sept 27 - Fitch Ratings has downgraded five classes and affirmed all
investment grade classes of Credit Suisse First Boston Mortgage Securities Corp.
series 2005-C5, commercial mortgage pass-through certificates. A detailed list
of rating actions follows at the end of this release.
The downgrades are the result of greater certainty of loss expectations since
Fitch's last rating action. Fitch modeled losses of 5.7% of the remaining pool.
Actual and modeled losses of the original pool balance are 6.7%. As of the
September 2012 distribution date, the pool's aggregate principal balance has
decreased 19% to $2.4 billion from $2.9 billion at issuance. Eleven loans (4%)
are currently defeased. The transaction currently has $2.9 million in cumulative
interest shortfalls affecting classes M thru S. Fitch has designated 66 loans
(21.2%) as Fitch Loans of Concern, which includes eight specially serviced loans
The largest contributor to Fitch modeled losses (2%) is a loan secured by a
720,558 square foot (sf) [527,668 sf of collateral] regional mall located in
Decatur, GA, approximately seven miles south of Atlanta. Macy's 198,000 sf store
is not part of the collateral. The largest tenants are Super Beauty (9%) lease
expiry April 2031, Galaxy Cinemas (8%) lease expiry January 2018, and Conway
(6%) lease expiry April 2031. As of the June 2012 rent roll, the property was
77.3% occupied. The decline in performance since issuance is attributed mainly
to the lease termination of the tenant, Amazing Rooms, for non-payment of rent.
The borrower has been able to lease some of the space vacated by Amazing Rooms
and continues to market the remaining space. The year-end (YE) 2011 DSCR was
1.26x, down from 1.52x in 2010 and 1.57x at issuance. There is approximately 4%
rollover in 2012, 17% in 2013, 2% in 2015, and 7% in 2016.
The second largest contributor to Fitch modeled loss (1.8%) is secured by a
157,931 sf retail property anchored by Publix and located in Weston, FL,
approximately 40 miles north of Miami. Since issuance, the property has suffered
declining occupancy and cash flow as a result of market and economic conditions.
The most recent servicer reported DSCR as of YE 2011 is 1.14x, slightly lower
than 1.22x YE 2010 and 1.57x at issuance. As of the July 2012 rent roll,
occupancy remained stable at 92% with average in-place rents of $43 per square
foot (psf). There is approximately 20% of the space rolling between 2013 and
The third largest contributor to loss (1.7%) is secured by a 308,353 sf retail
center located in Littleton, CO, approximately 10 miles southwest of Denver. The
largest tenants are Tradesmart (16%) lease expiry in May 2021, PetSmart (10%)
lease expiry in July 2016, and Jo-Ann Fabrics (8%) lease expiry in January 2014.
The second largest tenant at issuance, SteinMart (11%), vacated at lease
expiration in November 2011. As of the August 2012 rent roll, the property was
82% occupied with average rent of $14 psf. The most recent servicer reported
DSCR as of September 2011 is 1.07x, slightly below 1.17x at YE 2010 and 1.35x at
issuance. Approximately 38% of the leases roll between 2013 and 2015.
Fitch has downgraded the following classes and assigned/revised Recovery
Estimates(RE), as indicated:
--$21.8 million class H to 'CCCsf' from 'B-sf'; RE 100%;
--$32.6 million class J to 'CCsf' from 'CCCsf'; RE 0%;
--$32.6 million class K to 'Csf' from 'CCCsf'; RE 0%;
--$7.3 million class L to 'Csf' from 'CCsf'; RE 0%;
--$14.5 million class M to 'Csf' from 'CCsf'; RE 0%.
Fitch also affirmed the following classes and revised rating Outlooks as
--$26.6 million class A-3 at 'AAAsf'; Outlook Stable;
--$1.0 billion class A-4 at 'AAAsf'; Outlook Stable;
--$437.9 million class A-1A at 'AAAsf'; Outlook Stable;
--$80 million class A-AB at 'AAAsf'; Outlook Stable;
--$290.2 million class A-M at 'AAAsf'; Outlook Stable;
--$224.8 million class A-J at 'AAsf'; Outlook revised to Negative from Stable;
--$24.9 million class B at 'Asf'; Outlook Stable;
--$47.6 million class C at 'BBBsf'; Outlook Stable;
--$21.8 million class D at 'BBBsf'; Outlook Stable;
--$18.1 million class E at 'BBB-sf'; Outlook Stable;
--$29 million class F at 'BBsf'; Outlook revised to Negative from Stable;
--$36.3 million class G at 'Bsf'; Outlook revised to Negative from Stable;
--$10.3 million class N at 'Csf'; RE 0%;
--$5.2 million class 375-A at 'BBB+sf'; Outlook Stable;
--$9 million class 375-B at 'BBBsf'; Outlook Stable;
--$20 million class 375-C at 'BBB-sf'; Outlook Stable.
Classes O, P and Q have been depleted due to principal losses incurred and
remain at 'Dsf'; RE 0%.
Fitch does not rate class S which is also depleted due to principal losses
incurred. Classes A-1 and A-2 are paid in full. Fitch had previously withdrawn
the ratings on the interest-only classes A-X, A-SP, and A-Y.Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions