CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of Bear Stearns Commercial Mortgage Securities Trust (BSCMSI) commercial mortgage pass-through certificates series 2005-PWR8 due to stable performance since issuance. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
Fitch modeled losses of 3.8% of the remaining pool; expected losses on the original pool balance total 6.3%, including $72 million (4.1% of the original pool balance) in realized losses to date. Fitch has designated 35 loans (15.7%) as Fitch Loans of Concern, which includes five specially serviced assets (2.7%).
As of the January 2015 distribution date, the pool's aggregate principal balance has been reduced by 43.2% to $1 billion from $1.77 billion at issuance. Per the servicer reporting, 18 loans (18.6% of the pool) are defeased. Interest shortfalls are currently affecting classes G through Q. The largest contributors to expected losses represent approximately 44% of total modeled losses.
The largest contributor to modeled losses is the specially-serviced La Borgata at Serrano (1.2% of the pool), which is secured by an approximately 62,167 square foot (sf) mixed use office/retail property located in El Dorado Hills, CA (30 miles east of Sacramento, CA). The property has been real estate owned (REO) since August 2013. The special servicer reports 43% occupancy as of September 2014. The special servicer is working to lease up the property prior to marketing it for sale.
The next largest contributor to modeled losses is the specially-serviced Sunnyside Plaza Shopping Center (0.5% of the pool) which is secured by an approximately 66,698 sf retail anchored strip center located in Winchester, VA. The improvements were initially constructed in 1990 and renovated with the addition of a second building in 2001-2002. The property is anchored by a Food Lion (54.4% net rentable area, NRA). The special servicer confirmed Food Lion has extended their lease an additional five years from expiration in May 2015. As of June 30, 2014, the property has an annualized NOI of approximately $105,000 based on 71% occupancy. A receiver is in place. The special servicer is completing environmental investigation and proceeding with enforcement of remedies.
The third largest contributor to modeled losses is the 310 Technology Parkway Office Building (0.5%) which is secured by a 61,244 sf, two-story office building constructed in 1998, located in Norcross, GA. The loan transferred to the special servicer in April 2012 when the single tenant vacated its space and the property has remained fully vacant. The property became REO in April 2014. The special servicer has engaged a property manager and approved a business plan to maintain the property as a single-tenant or two-tenant space.
Rating Outlooks on classes A-4, A-4FL, B, and C remain Stable due to increasing credit enhancement and continued paydown. The Rating Outlook on class A-J is revised to Positive from Stable due to increasing credit enhancement and the high percentage of defeased loans. The Rating Outlook on class D is revised to Stable from Negative given the stable expected losses within the remaining pool.
Fitch affirms the following classes and assigns or revises Rating Outlooks as indicated:
--$150 million class A-J at 'Asf'; Outlook to Positive from Stable;
--$26.5 million class D at 'Bsf'; Outlook to Stable from Negative.
Fitch affirms the following classes as indicated:
--$687.6 million class A-4 at 'AAAsf'; Outlook Stable;
--$33.7 million class A-4FL at 'AAAsf'; Outlook Stable;
--$37.5 million class B at 'BBB-sf'; Outlook Stable;
--$17.7 million class C at 'BBsf'; Outlook Stable;
--$17.7 million class E at 'CCCsf'; RE 90%;
--$19.9 million class F at 'CCsf'; RE 0%;
--$11.6 million class G at 'Dsf'; RE 0%;
--$0 class H at 'Dsf'; RE 0%;
--$0 class J at 'Dsf'; RE 0%;
--$0 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%;
--$0 class M at 'Dsf'; RE 0%;
--$0 class N at 'Dsf'; RE 0%;
--$0 class P at 'Dsf'; RE 0%.
The class A-1, A-2, A-3 and A-AB certificates have paid in full. Fitch does not rate the class Q certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria