CHICAGO--(BUSINESS WIRE)--Fitch Ratings has upgraded one class of Citigroup Commercial Mortgage Securities Inc. Series 2005-EMG mortgage pass-through certificates, series 2005-EMG. A complete list of rating actions follows at the end of this release.
KEY RATING DRIVERS:
The upgrade reflects stable collateral performance and paydown of approximately 99.7%. The paydown provides further certainty to the final loss estimates for the pool. Fitch expects the remaining non-distressed class to pay in full within the next 15 months. The pool has become increasingly concentrated with only two loans remaining, both of which are secured by retail properties located in New York.
RATING SENSITIVITIES:
The loans remaining in the pool have at least 10 years of seasoning and are secured by properties that exhibit a strong, stable operating history. As such, ratings are likely to remain stable throughout the remaining life of the deal.
The pool consists of seasoned loans originated by Emigrant Savings Bank from 1976 to 2004. In most cases, the loans were originated in higher interest rate environments with prepayment lockouts. Due to the lockout provisions, the borrowers have been unable to take advantage of the lower interest rates; therefore, they are less likely to default as their loans approach maturity and more attractive financing options become available.
The two loans remaining mature in 2018 and 2020, respectively, and have significant amortization. The average debt service coverage ratio for the pool was 1.82x as of year-end (YE) 2013.
As of the January 2014 distribution date, the pool's aggregate principal balance has paid down by 99.8% to $1.9 million from $772.1 million at issuance. Interest shortfalls are currently affecting classes M. There are no loans in special servicing or on the watchlist.
Fitch has upgraded the following class:
--$311,001 class L to 'Bsf' from 'CCCsf'; Assigns Outlook Stable.
Fitch has affirmed the following class and revised the RE as indicated:
--$1.6 million class M at 'Dsf'; RE 100%.
Classes A-1 through K have paid in full. Fitch previously withdrew the rating of the interest-only class X.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (December 2014).
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=812608
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=957275
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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.