CHICAGO--(BUSINESS WIRE)--Fitch Ratings affirms the remaining distressed classes of GE Commercial Mortgage Corporation, series 2005-C3 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmation of class J is the result of continued expected losses. Three specially serviced assets remain in the pool and losses are considered inevitable.
The pool consists of three assets: Shaw's Marketplace, categorized as 'Performing Matured' (52.8%); Tinley Crossing - 8151 W. 183rd, categorized as 'Non Performing Matured' (24.6%); and the real estate owned (REO) Valley View Market (22.6%). Due to appraisal reductions, there is not enough principal and interest to pay the bonds in full each month; since January 2016, class J is being shorted just over $1 thousand in principal per month. However, ultimate recovery of the principal shortfalls is possible upon the disposition of any of the remaining assets.
As of the May 2016 distribution date, the month's net appraisal subordinate entitlement reduction (ASER), as a result of appraisal reductions, was approximately $15 thousand. Combined with approximately $5 thousand in additional fees and expenses, the trust does not receive enough funds to pay each bond in full. Full interest is paid to class J and X-C; however, principal is due after interest so the funds are not sufficient to pay full principal to class J. As of May, class J was shorted $1,137 in principal. Class K receives neither principal nor interest and has already incurred realized losses.
The rating of class J will remain at 'C' until losses are realized at which time the rating will be lowered to 'D'. Class K has previously incurred principal losses and will remain at 'D' until withdrawn.
DUE DILIGENCE USAGE
No due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following class:
--$16.3 million class J at 'Csf'; RE 20%.
Classes A-1, A-2, A-3FX, A-3FL, A-4, A-5, A-6, A-AB, and classes B through H have paid in full. Classes K, L, M, N and O are affirmed at 'Dsf' RE0%, and have either incurred realized losses or been reduced to zero due to realized losses. Classes P and Q, also reduced to zero due to realized losses, are not rated by Fitch. Fitch previously withdrew the ratings on the interest only classes X-C and X-P.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
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Dodd-Frank Rating Information Disclosure Form