CHICAGO--(BUSINESS WIRE)--Fitch Ratings has upgraded one class and affirmed four classes of Greenwich Capital Commercial Funding Corporation Commercial Mortgage Trust series 2002-C1, commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The upgrade is a result of paydown, high credit enhancement and defeasance. Three loans remain in the pool: one in special servicing (73.4%), one fully defeased (42.6%), and one fully amortizing (9.9%).
The pool has experienced $45.4 million (3.9% of the original pool balance) in realized losses to date. As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 99.2% to $8.9 million from $1.18 billion at issuance. Interest shortfalls are currently affecting classes M through Q.
The largest remaining loan is the specially-serviced Hope Hotel & Conference Center (73.4% of the pool). The real estate owned (REO) asset is a 266-room limited service hotel located in Dayton, OH, adjacent to Wright-Patterson Air Force Base. The loan transferred to special servicing in November 2008 due to imminent default. The borrower filed for bankruptcy in June 2010 after the special servicer initiated the foreclosure process. The bankruptcy was dismissed by the court and a receiver has been in place since August 2012. The property became REO in May 2014. Interim financial statements through Sept. 30, 2014 indicate improved property performance from the prior year. The special servicer indicates they are working to add value and increase occupancy prior to marketing the asset for sale.
The second largest remaining loan, Town Square Shopping Center (42.6%) is fully defeased through its first open date in June 2017.
The third remaining loan, Tarry Town Center (9.9%) is secured by a 66,273 SF mixed-use office and retail property in Austin, TX. According to the Dec. 31, 2014 rent roll, the property is 87.5% occupied. The largest tenant (8.2%) has a lease maturity in May 2015. Per the servicer's OSAR, the property reported a DSCR of 3.18x year-to-date through Aug. 31, 2014. The loan is fully amortizing and matures in April 2017.
RATING SENSITIVITIES
The outlook on class L is stable as the pool is concentrated and interest shortfalls remain possible with the largest asset in special servicing. Additional upgrades are possible for class L depending on additional certainty on the timing and proceeds from future disposition of the REO asset. This class is fully covered by defeased loans and no downgrades are projected.
Classes M, N, O, and P will remain at 'Dsf' as they have incurred losses.
Fitch upgrades the following class and assigns Rating Outlook as indicated:
--$1.9 million class L to 'Asf' from 'CCCsf', Outlook Stable assigned.
Fitch affirms the following classes and revises the Recovery Estimate as indicated:
--$7.0 million class M at 'Dsf', RE 60%;
--$0 class N at 'Dsf', RE 0%;
--$0 class O at 'Dsf', RE 0%;
--$0 class P at 'Dsf', RE 0%;
The class A-1, A-2, A-3, A-4, B, C, D, E, F, G, H, J, K, and the interest-only classes XPB and XP certificates have paid in full. Fitch does not rate the class Q and SWD-B certificates. Fitch previously withdrew the rating on the interest-only class XC certificates.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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 >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (March 2015);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria - Effective from 4 August 2014 to 31 March 2015
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=983536
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