Fitch Affirms Americold 2010 LLC Trust, Series 2010-ART

CHICAGO--()--Fitch Ratings has affirmed all classes of Americold 2010 LLC Trust, commercial mortgage pass-through certificates, series 2010-ART. A complete list of rating actions is listed at the end of this release.

KEY RATING DRIVERS

The affirmations are the result of portfolio performance consistent with Fitch issuance expectations. As of year-end (YE) 2014, the servicer-reported net cash flow (NCF) debt service coverage ratio (DSCR) was 2.16x compared to a 2.12x Fitch stressed DSCR at issuance. As of YE 2014 the servicer reported portfolio occupancy was 75% compared to 77% at issuance. The portfolio NCF has trended down over the last few years, declining by approximately 5% per year since 2011. YE 2014 NCF was on par with YE 2013. The performance declines have been offset by amortization of approximately 11% since issuance combined with conservative issuance cash flow stresses by Fitch. One property has been released and the proceeds went to pay down class A-2-FL.

The loan is expected to mature in January 2021. The Fitch maturity stressed loan-to-value (LTV) ratio is approximately 51% based on capitalization of the Fitch-adjusted net cash flow at a rate of 10.11%.

RATING SENSITIVITIES

The Stable Rating Outlooks indicate that rating changes are unlikely over the next one to two years. Should occupancy or portfolio cash flow deteriorate materially, downgrades are possible. Upgrades are unlikely given the specialized nature of the collateral and sponsor concentration.

The transaction represents a securitization of the beneficial interest in a 10-year loan, cross-collateralized first lien mortgage secured by 53 temperature-controlled warehouses (also referred to as cold storage facilities) owned collectively by three property companies (the PropCo borrowers). The collateral for the note also includes the PropCo borrowers' interest in the leases and rents, three operating companies' (the OpCo borrowers) interest in the handling fees and contract rights in the properties, and the assignment of the collateral accounts and the rate cap.

Proceeds from the notes, together with additional equity, were used by the sponsor, Americold Realty Operating Partnership, L.P. (Americold), to consummate the acquisition of all the non-Canadian facilities and operations of Versacold International Corporation (Versacold), a Canadian subsidiary, pay off existing debt secured by 30 properties included in the portfolio, and for general corporate purposes. The ratings reflect an analysis of the cash flows from the assets of the trust, not an assessment of the corporate default risk of the ultimate parent.

DUE DILIGENCE USAGE

No third party due diligence was provided to or reviewed by Fitch in relation to this rating action.

Fitch has affirmed the following classes:

--$97.1 million class A-1 notes at 'AAAsf'; Outlook Stable;

--$150.3 million class A-2-FX notes at 'AAAsf'; Outlook Stable;

--$81.6 million class A-2-FL notes at 'AAAsf'; Outlook Stable;

--$60 million class B notes at 'AAsf'; Outlook Stable;

--$62.4 million class C notes at 'Asf'; Outlook Stable;

--$82.6 million class D notes at 'BBB-sf'; Outlook Stable.

Additional information is available on www.fitchratings.com

Applicable Criteria

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 20 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862818

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=988407

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=988407

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland
Director
+1-312-606-2346
Fitch Ratings, Inc.
70 W. Madison St
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson
Senior Director
+1-312-606-2341
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland
Director
+1-312-606-2346
Fitch Ratings, Inc.
70 W. Madison St
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson
Senior Director
+1-312-606-2341
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com