NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken various rating actions on already distressed U.S. commercial mortgage-backed securities (CMBS) bonds. Fitch downgraded 16 bonds in eight transactions to 'D', as the bonds have incurred a principal write-down. The bonds were all previously rated 'C', which indicates that losses were inevitable.
Fitch has also withdrawn the ratings on five classes in one transaction as a result of realized losses. The trust balances have been reduced to $0 or have experienced non-recoverable realized losses and are no longer considered by Fitch to be relevant to the agency's coverage.
KEY RATING DRIVERS
Today's downgrades are limited to just the bonds with write-downs. Any remaining bonds in these transactions have not been analyzed as part of this review. In cases where the last rated tranches of a transaction are in default and rated 'D', the defaulted ratings will be automatically withdrawn within 11 months of the date of the previous rating action.
A spreadsheet detailing Fitch's rating actions on the affected transactions is available at 'www.fitchratings.com' by performing a title search for 'Fitch Downgrades or Withdraws Ratings on Distressed Classes in 9 U.S. CMBS Transactions' or by clicking on the link above.
While the bonds that have defaulted are not expected to recover any material amount of lost principal in the future, there is a limited possibility this may happen. In this unlikely scenario, Fitch would further review the affected classes.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at 'www.fitchratings.com'.
Fitch Downgrades or Withdraws Ratings on Distressed Classes in 9 U.S.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S.
Re-REMIC Criteria (pub. 13 Nov 2015)
Dodd-Frank Rating Information Disclosure Form