Fitch Affirms CDC 2002-FX1; Revises Outlook to Negative for Class H

CHICAGO--()--Fitch Ratings has affirmed all classes of CDC Commercial Mortgage Trust 2002-FX1 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

Fitch has also revised the Outlook on class H to Negative from Stable due to increased likelihood of future interest shortfalls given the concentrated nature of the pool. Each remaining loan has an Anticipated Repayment Date (ARD) and subsequent increased interest rate. It is possible that loans may transfer to the special servicer and the resulting fees and expenses could cause interest shortfalls to class H. While full recovery of any shortfalls are possible, according to Fitch's global criteria for rating caps, Fitch will not assign or maintain 'AAAsf' or 'AAsf' ratings for notes that it considers to have a strong probability of incurring interest shortfalls.

The affirmations are due to sufficient credit enhancement to the remaining Fitch rated classes. As of the December 2012 distribution date, the pool's aggregate principal balance was $120.1 million, down from $637.5 million at issuance. Nine loans remain, three of which are fully defeased (19.3%). Interest shortfalls are affecting class Q.

The largest Fitch loan of concern is the Marriott Islandia, secured by a 278-room Marriott (18.5% of pool balance) located in Happaugue, NY. The asset transferred to special servicing in October 2011 prior to the ARD after the borrower requested to keep paying the then current rate. The request was denied and the loan is currently paying an increased rate as it has past the February 2012 ARD. The loan is current and has returned to the master servicer.

Fitch affirms the following classes and assigns Rating Outlooks as indicated:

--$1.3 million class C at 'AAAsf'; Outlook Stable;
--$20.7 million class D at 'AAAsf'; Outlook Stable;
--$8 million class E at 'AAAsf'; Outlook Stable;
--$8 million class F at 'AAAsf'; Outlook Stable;
--$12.8 million class G at 'AAAsf'; Outlook Stable;
--$9.6 million class H at 'AAAsf'; Outlook to Negative from Stable.

Fitch does not rate classes J through Q. Classes A-1 through B and class X-CP are paid in full. The rating on class X-CL was previously withdrawn.

Additional information on Fitch's criteria for analyzing U.S. CMBS is available in the Dec. 18, 2012 report, 'U.S. Fixed Rate Multiborrower CMBS Surveillance Methodology 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 Methodology and Re REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Primary Analyst:
Britt Johnson, +1-312-6006-2341
Senior Director
Fitch, Inc.
70 W. Madison
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Britt Johnson, +1-312-6006-2341
Senior Director
Fitch, Inc.
70 W. Madison
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com