NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 12 classes of Cantor Commercial Real Estate (CFCRE) Commercial Mortgage Trust 2011-C2 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to stable pool performance since issuance. Fitch modeled losses of 2.5% of the remaining pool; expected losses on the original pool balance total 2.4%. The pool has experienced no realized losses to date. As of the September remittance report, there were two specially serviced assets (2.1%) in the pool. However, the largest (1.5%) was subsequently fully repaid on Oct. 2, 2014. There are no other current Fitch Loans of Concern.
As of the September 2014 distribution date, the pool's aggregate principal balance has been reduced by 3.6% to $746.6 million from $774.1 million at issuance. Per the servicer reporting, one loan (1.4% of the pool) is defeased. Interest shortfalls are currently affecting class NR.
The remaining specially serviced loan (0.5%) is secured by a mixed-use property located in Dearborn, MI. The collateral consists of a ground-floor retail component tenanted by Buffalo Wild Wings and Panera, and 28 multifamily units. The loan transferred to the special servicer in May 2014 after failing to comply with financial reporting requirements under the loan documents. It remains delinquent on its March 2014 payment. Further, there is ongoing litigation involving the sponsorship of the loan. A receiver is currently in place until the parties settle their dispute. While no recent financials have yet to be provided, the Receiver has indicated cash flow is insufficient to cover debt service.
The largest loan in the pool (12.8%) is the RiverTown Crossings Mall, a 637,814 square foot (sf) interest in a 1.3 million sf regional mall located in Grandville, MI. Anchors include: Macy's, Younkers, Sears, JC Penney, and Kohl's (non-collateral). As of year-end (YE) 2013, the servicer-reported collateral occupancy and debt service coverage ratio (DSCR) was 94.5% and 1.99x, respectively.
RATING SENSITIVITIES
All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics.
Fitch affirms the following classes:
--$24.8 million class A-1 at 'AAAsf', Outlook Stable;
--$341.4 million class A-2 at 'AAAsf', Outlook Stable;
--$34.1 million class A-3 at 'AAAsf', Outlook Stable;
--$114 million class A-4 at 'AAAsf', Outlook Stable;
--$592.7 million class X-A* at 'AAAsf'; Outlook Stable;
--$78.4 million class A-J at 'AAAsf', Outlook Stable;
--$28.1 million class B at 'AAsf', Outlook Stable;
--$31.9 million class C at 'Asf', Outlook Stable;
--$18.4 million class D at 'BBB+sf', Outlook Stable;
--$28.1 million class E at 'BBB-sf', Outlook Stable;
--$10.6 million class F at 'BBsf', Outlook Stable;
--$9.7 million class G at 'Bsf', Outlook Stable.
*Notional amount and interest only
Fitch does not rate the $27,093,416 class NR certificates.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:
--'CFCRE Commercial Mortgage Trust 2011- C2-- Appendix' (Dec. 29, 2011)
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 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 then CMBS then Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=905494
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