Fitch Ratings-New York-April 05:
Fitch Ratings has affirmed 92 classes from eight U.S. and Canadian CMBS transactions and three Freddie Mac structured pass-through transactions that were issued in 2015. A spreadsheet detailing Fitch's rating actions can be found at 'www.fitchratings.com' by performing a title search for 'U.S. CMBS Rating Actions for April 5, 2016'.
KEY RATING DRIVERS
The rating actions reflect the overall stable performance of the underlying collateral pools. These transactions were generally issued in the first or second quarter of 2015. Except for one loan (1.1%, CGCMT 2015-GC29) that was 30 days delinquent during December 2015 and is now current, none of the transactions have had delinquent or specially serviced loans since issuance. The transactions' aggregate principal balance has been reduced by 0.35% on average.
Fitch has reviewed the servicer-reported cash flow, occupancy and watch-list commentary, if any, for the top 15 loans of each pool. There are 36 loans on the servicers' watch-lists in total; only three are within the top 15 loans of their respective pools. There have been no material changes to the pool metrics for any of the reviewed transactions.
Therefore, Fitch is relying on the original rating analyses of the pool, given the recent issuance of the transactions. The affirmations of the Freddie Mac structured pass-through certificates, series K-044, series K-045, and series K-046 certificates are the result of the pass-through nature of the certificates, as they are dependent on the underlying ratings of the corresponding classes of FREMF 2015-K44, FREMF 2015-K45, and FREMF 2015-K46.
Fitch has designated two loans within two of the reviewed transactions as Fitch loans of concern, both of which are current and neither of which have been in special servicing. The Fitch loans of concern are described below. Oxmoor, 2.2% (FREMF 2015-K44), is secured by a 432-unit multifamily property in Louisville, KY. The property has experienced a decline in net cash flow and occupancy as of year-end (YE) 2015 from issuance due to flooding in July 2015 which damaged 21 units. Servicer watchlist commentary from March 2016 notes that the borrower has indicated that all loss repairs have been completed and the subservicer is in the process of scheduling a verification inspection to confirm the repairs. Hutchinson Metro Center I, 8.5% (WFCM 2015-C29), is secured by a 422,452 square foot (sf) office building located within a 42-acre suburban style office and medical campus in the Pelham Bay section of the Bronx. The property's net cash flow and occupancy declined after tenant, Visiting Nurses of New York (13.2% of net rentable area NRA ), vacated upon expiration in November 2015. At issuance the loan was structured with a $2 million upfront rollover reserve to mitigate the impact of the tenant's expiration. Fitch accounted for this rollover risk in its original issuance analysis and current performance reflects only a small decline from Fitch's issuance expectations. As the largest loan in the pool, Fitch will monitor the occupancy and cash flow of the property. Fitch continues to closely monitor CMBS transactions with exposure to energy markets such as Houston, North Dakota, and Edmonton and Calgary in Alberta, Canada. Six of the eight reviewed transactions include loans backed by properties in the Houston, TX metropolitan area. Additionally, the REAL-T 2015-1 transaction includes five loans secured by industrial properties located in Alberta, Canada. Energy Market Exposure: WFCM 2015-C29 5 loans, Houston MSA, multifamily (5.3% of the pool) 1 loan, Houston, hotel (0.4%) WFCM 2015-NXS1 2 loans, Houston, retail (1.16%) 1 loan, Houston, office (2.05%) MSBAM 2015-C23 1 loan, Houston, multifamily loan (5.43%) 3 loans, Houston MSA, retail (1.37%) FREMF 2015-K46 1 loan, Houston MSA, multifamily (1.8%) FREMF 2015-K45 3 loans, Houston MSA, multifamily (3.75%) CGCMT 2015-GC29 5 loans, Houston, multifamily (2.49%) REAL-T 2015-1 5 loans, various, Alberta, industrial (8.0%) 1 loan, Calgary, Alberta, multifamily (1.0%)
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transactions and overall stable pool performance, Fitch does not foresee positive or negative ratings migration to these transactions until a material economic or asset-level event changes the transactions' portfolio-level metrics. Additional information on rating sensitivity is discussed further in each transaction's new issue report available at www.fitchratings.com.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action. Contact: Primary Analyst Stephanie Duski Analyst +1-646-582-4820 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Committee Chairperson Christopher Bushart Senior Director +1-212-908-0606 Media Relations: Sandro Scenga, New York, Tel: +1 212 908 0278, Email: sandro.scenga@thefitchgroup.com. Additional information is available at www.fitchratings.com.
Applicable Criteria Criteria for Rating Caps and Limitations in Global Structured Finance Transactions -- Effective 5/28/14 to 6/16/16 (pub. 28 May 2014) https://www.fitchratings.com/site/re/748781 Global Structured Finance Rating Criteria - Effective from 6 July 2015 to 27 June 2016 (pub. 06 Jul 2015) https://www.fitchratings.com/site/re/867952 U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria: Effective from 11/13/2015 to 11/11/2016 (pub. 13 Nov 2015) https://www.fitchratings.com/site/re/873395 Related Research Citigroup (NYSE:C) Commercial Mortgage Trust 2015-GC29 -- Appendix https://www.fitchratings.com/site/re/864147 FREMF 2015-K44
Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-044
-- Appendix https://www.fitchratings.com/site/re/864496 FREMF 2015-K45 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-045
-- Appendix https://www.fitchratings.com/site/re/865489 FREMF 2015-K46 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-046
-- Appendix https://www.fitchratings.com/site/re/866839 MSBAM Commercial Mortgage Trust 2015-C23
-- Appendix https://www.fitchratings.com/site/re/866790 REAL-T 2015-1
-- Appendix https://www.fitchratings.com/site/re/865498 Wells Fargo (NYSE:WFC) Commercial Mortgage Trust 2015-C29
-- Appendix https://www.fitchratings.com/site/re/867235 Wells Fargo Commercial Mortgage Trust 2015-NXS1
-- Appendix https://www.fitchratings.com/site/re/864852 Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/site/dodd-frank-disclosure/1002049 Solicitation Status https://www.fitchratings.com/site/pr/1002049#solicitation Endorsement Policy https://www.fitchratings.com/regulatory
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