(The following statement was released by the rating agency)
NEW YORK, April 05 (Fitch) 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@fitchratings.com.
Additional information is available at www.fitchratings.com.
Fitch Affirms Classes from 11 Recent Vintage U.S. and Canadian CMBS Transactions
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879908
Applicable Criteria
Criteria for Rating Caps and Limitations in Global Structured Finance
Transactions (pub. 28 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC
Criteria (pub. 13 Nov 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395
Related Research
Citigroup (NYSE:C) Commercial Mortgage Trust 2015-GC29 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864147
FREMF 2015-K44 Multifamily Mortgage Pass-Through Certificates and Freddie Mac
Structured Pass-Through Certificates, Series K-044 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864496
FREMF 2015-K45 Multifamily Mortgage Pass-Through Certificates and Freddie Mac
Structured Pass-Through Certificates, Series K-045 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865489
FREMF 2015-K46 Multifamily Mortgage Pass-Through Certificates and Freddie Mac
Structured Pass-Through Certificates, Series K-046 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866839
MSBAM Commercial Mortgage Trust 2015-C23 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866790
REAL-T 2015-1 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865498
Wells Fargo (NYSE:WFC) Commercial Mortgage Trust 2015-C29 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867235
Wells Fargo Commercial Mortgage Trust 2015-NXS1 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864852
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr
_id=1002049
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002049
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det
ail=31
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