NEW YORK--(BUSINESS WIRE)--Fitch Ratings has downgraded 20 bonds in 16 U.S. commercial mortgage-backed securities (CMBS) transactions to 'D' seeing as the bonds have incurred a principal write-down. The bonds were all previously rated 'CCC', 'CC' or 'C', indicating that Fitch expected a default.
Today's action is limited to just the bonds with write-downs. The remaining bonds in these transactions have not been analyzed as part of this review. Fitch downgrades bonds to 'D' as part of the ongoing surveillance process and will continue to monitor these transactions for additional defaults.
A spreadsheet detailing Fitch's rating actions on the affected transactions is available on Fitch's website at 'www.fitchratings.com' by performing a title search for: 'Fitch Downgrades 20 Bonds in 16 U.S. CMBS Transactions'.
The spreadsheet also details Fitch's Recovery Ratings (RRs) assigned to the transactions. The RR scale is based upon the expected relative recovery characteristics of an obligation. For structured finance, RRs are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 13, 2010);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Nov. 17, 2010).
Applicable Criteria and Related Research: Fitch Downgrades 20 Bonds in 16 U.S. CMBS Transactions
Global Structured Finance Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions