CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed six classes of B2R Mortgage Trust 2015-2 mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
Stable Performance: The affirmations are due to overall stable performance since issuance. Although three small loans transferred to special servicing (0.5% of the pool), the pool loss expectations continue to reflect the expected losses from issuance. As of the November 2016 distribution date, the pool's aggregate principal balance has been reduced by 1.6% to $296.2 million from $301 million at issuance.
Property Type Concentration: Single-family residences make up the largest property type in the pool (by allocated loan balance) at 74.0%, followed by two- to four-unit residences at 12.5%, townhomes at 7.8%, condominiums at 3.9%, and multifamily at 1.8%. Given their income-producing residential nature, all of the properties in this pool were classified as multifamily for modeling purposes.
Loan and Borrower Diversity: The pool consists of 209 loans secured by 4,263 properties; on average, loans are cross-collateralized by 20 properties. The 10 largest loans represent 49.4% of the pool and are structured with a 100% pledge of equity in the borrower in addition to the first mortgages on the individual assets. The average loan balance is $1.42 million.
Below-Average Amortization: The pool is scheduled to amortize by 7.6% of the initial pool balance prior to maturity; this is below the previously rated B2R 2015-1 transaction at 11.5%. Twenty-six loans (31.3%) are full-term interest only.
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.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$187.1 million class A at 'AAAsf'; Outlook Stable;
--Interest-only class X-A at 'AAAsf'; Outlook Stable;
--Interest-only class X-B at 'AA-sf'; Outlook Stable;
--$31.2 class B at 'AA-sf'; Outlook Stable;
--$17.7 million class C at 'A-sf'; Outlook Stable;
--$22.6 million class D at 'BBB-sf'; Outlook Stable.
Fitch does not rate the following certificates: E, F, G or H. The interest-only class X-C, which Fitch did not expect to rate, was removed from the capital structure by the issuer prior to closing.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
https://www.fitchratings.com/site/re/886006
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)
https://www.fitchratings.com/site/re/882401
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
https://www.fitchratings.com/site/re/883130
U.S. and Canadian Multiborrower CMBS Surveillance Criteria (pub. 11 Nov 2016)
https://www.fitchratings.com/site/re/889634
Related Research
B2R Mortgage Trust 2015-2 -- Appendix
https://www.fitchratings.com/site/re/873213
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1015017
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1015017
Endorsement Policy
https://www.fitchratings.com/regulatory
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