CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed six classes of B2R Mortgage Trust 2015-1 Mortgage Pass-Through Certificates. A detailed list of rating actions follows at the end of this press release.
The certificates represent the beneficial ownership in the trust, primary assets of which are 143 loans secured by 3,154 single family rental properties. On average loans are cross-collateralized by 22 properties. The loans were contributed to the trust by B2R Finance L.P.
KEY RATING DRIVERS
The affirmations are due to overall stable performance. The stable performance reflects no material changes to pool metrics since issuance, therefore the original rating analysis was considered in affirming the transaction.
As of the March 2016 distribution date, the pool's aggregate principal balance has been reduced by 1.4% to $226.2 million from $229.5 million at issuance. The pool has five interest-only loans (3.3%). There is one loan in special servicing (0.35%); the special servicer is evaluating various workout strategies. The loan is secured by 20 units across six properties located in Livingston and Newark, NJ and is 60 days delinquent.
As of the March 2016 remittance, Fitch received occupancy and/or rental income information on approximately 90% of the pool from the master servicer, Midland Loan Services. This includes the top 15 loans, which represents 45% of the pool by balance.
The largest loan is the Conrex portfolio loan (9.6% of the pool balance), which is secured by first mortgages on 561 properties as well as an equity pledge by the owner of the borrower. There is a pari passu A-2 note not included in this transaction. As of the servicer reported Oct. 2015 rent roll, occupancy was 88% compared with 91% at issuance.
The second-largest loan is the Camillo portfolio loan (8.7%), secured by first mortgages on 225 properties as well as an equity pledge by the owner of the borrower. There is a pari passu A-2 note not included in this transaction. As of the servicer reported third-quarter 2015 rent roll, occupancy was in line with issuance at 96%.
RATING SENSITIVITIES
The Rating Outlooks on all classes remain Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'B2R Mortgage Trust 2015-1' (April 22, 2015), available at www.fitchratings.com.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following ratings:
--$109.5 million class A-1 at 'AAAsf'; Outlook Stable;
--$39.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$148.7 million* class X-A at 'AAAsf'; Outlook Stable;
--$20.7 class B at 'AA-sf'; Outlook Stable;
--$13.8 million class C at 'A-sf'; Outlook Stable;
--$16.4 million class D at 'BBB-sf'; Outlook Stable.
* Notional amount and interest-only.
Fitch does not rate the following certificates: E, F, G, H, or the interest-only class X-B.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158
Criteria for Analyzing Multiborrower U.S. and Canadian Commercial Mortgage Transactions (pub. 03 Mar 2016)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=878298
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 28 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395
Related Research
B2R Mortgage Trust 2015-1 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864244
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002596
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002596
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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