Feb 15 - Fitch Ratings has affirmed 11 classes of Morgan Stanley Capital I
Trust (MSC) commercial mortgage pass-through certificates series 2011-C1 due to
stable performance. A detailed list of rating actions follows at the end of this
KEY RATING DRIVERS
Fitch's affirmations are based on the stable performance of the underlying
collateral pool. There have been no delinquent or specially serviced loans since
issuance. The pool has experienced no realized losses to date.
As of the January 2013 distribution date, the pool's aggregate principal balance
has been reduced by 1.9% to $1.52 billion from $1.55 billion at issuance. No
loans have defeased since issuance.
The largest loan in the transaction (15.5%) is secured by a 1.1 million square
foot (sf) (435,219 sf owned) regional mall located in Newark, DE. The mall is
anchored by Macy's, JC Penney, Target, and Nordstrom. Major tenants include
Barnes & Noble (anchor owned), Forever 21 (2.5%) net rentable area (NRA) and H&M
(1.8%) NRA. In-line tenants include Express/Express Men, Anthropologie,
Victoria's Secret, and Urban Outfitters. Total mall occupancy as of Sept. 30,
2012 was 98%, compared to 94% at issuance. The most recent servicer-reported
debt service coverage ratio (DSCR) as of third quarter 2012 was 2.67 times (x)
up from 1.88x at issuance. The loan sponsors are Prime Property Fund and General
The second largest loan in the pool (11.5%) is secured by a two-building office
complex consisting of 1.9 million sf located in Chicago, IL. Major tenants are
Blue Cross and Blue Shield Association (12%), lease expiration in March 2024,
Fox Television Studios (5%), lease expiration December 2022, and Teng &
Associates (4%), lease expiration June 2017. There is limited near-term rollover
with 8% rolling in 2013. Additionally, less than 15% rolls annually through
2020. The property is currently 79% leased, which compares to 73% at issuance.
The most recent servicer-reported DSCR as of third quarter 2012 was 1.99x up
from 1.87x at issuance.
The largest Fitch Loan of Concern is the eighth largest loan in the deal (3.6%)
and is secured by a 222,768 sf office building located in the Westwood section
of Los Angeles, CA. The property has seen a decline in occupancy since issuance.
The largest tenants at issuance were Richardson & Patel (10.3%) NRA, with a
lease expiration in October 2011, Castle & Cook (10.2%), lease expiration July
2015, and The Regency Club (8.2%), lease expiration in June 2011. The most
recent servicer-reported occupancy as of September 2012 is 60% down from 70% at
year-end 2011 and 84.2% at issuance. The most recent servicer-reported DSCR as
of September 2012 was 1.04x, down from 1.55x at issuance. Fitch is awaiting an
updated rent roll. Fitch will continue to closely monitor this loan.
Fitch affirms the following classes:
--$58 million class A-1 at 'AAAsf'; Outlook Stable;
--$597.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$105.1 million class A-3 at 'AAAsf'; Outlook Stable;
--$404.1 million class A-4 at 'AAAsf'; Outlook Stable;
--Interest-only class X-A 'at 'AAAsf'; Outlook Stable;
--$60 million class B at 'AAsf'; Outlook Stable;
--$89 million class C at 'Asf'; Outlook Stable;
--$85.2 million class D at 'BBBsf'; Outlook Stable;
--$19.4 million class E at 'BBB-sf'; Outlook Stable;
--$13.5 million class F at 'BB+sf'; Outlook Stable;
--$15.5 million class G at 'BBsf'; Outlook Stable.
Fitch does not rate the class H, J, K, L, M and interest-only class X-B
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions
is available in the Dec. 18, 2012 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
Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria