NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken various rating actions on already distressed U.S. commercial mortgage-backed securities (CMBS) bonds. Fitch downgraded two bonds in two transactions to 'D', as the bonds have incurred a principal write-down. The bonds were previously rated 'C', which indicates that losses were inevitable.
Fitch also withdraws the ratings on 28 classes in six deals as a result of realized losses. This figure includes one bond from one transaction that will simultaneously be withdrawn in connection with downgrades to 'D', as a result of realized losses. The trust balances have been reduced to $0 or have experienced non-recoverable realized losses.
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the last rated tranches of a transaction are in default and rated 'D', the defaulted ratings will be automatically withdrawn within 11 months of the date of the previous rating action.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 7 U.S. CMBS Transactions', or by clicking on the link above.
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: Fitch Downgrades or Withdraws Ratings on Distressed Classes in 7 U.S. CMBS Transactions
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria