CHICAGO--(BUSINESS WIRE)--Fitch Ratings has upgraded one class and affirmed five classes of GE Capital Commercial Mortgage Corporation (GECCMC) commercial mortgage pass-through certificates series 2001-3 due to stable pool performance. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The upgrade is due to increased credit enhancement as the result of continued principal paydown as well as stable overall pool performance since Fitch's last rating action. Fitch modeled losses of 37.6% of the remaining pool; expected losses of the original pool are at 6.1% including losses already incurred to date (5.1%). Fitch has designated four loans (57.4%) as Fitch Loans of Concern of which all are specially serviced.
As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 97.4% (including 5.1% of realized losses) to $24.8 million from $963.8 million at issuance. Cumulative interest shortfalls in the amount of $3.067 million are currently affecting classes P through K.
Of the original 155 loans, nine remain, three of which (53.42%) are in special servicing. The non-specially serviced loans have maturity dates in 2016 (27%), 2019 (4.4%), 2020 (12.2%), and 2021 (3%). One loan (4.4%) is defeased, five loans (27.2%) are fully amortizing and one loan has a balloon maturity (19.4%, 2016).
The largest contributor to expected losses is the real estate owned (REO) 86,763 square foot (sf) retail center, Sanbusco Market Center, located in downtown Santa Fe, NM. The center is in the heart of the railyard district and has experienced leasing challenges for the past few years after Borders vacated the property. Occupancy is at 72% with only the former Borders space vacant as of fourth quarter 2014. The special servicer continues to modernize the center's infrastructure with a roof replacement scheduled for early summer. Disposition options will be evaluated after the completion of this work.
The second largest contributor to expected losses, Wintonbury Mall, is an REO 110,949 sf unanchored retail center located in Bloomfield, CT, a suburb of Hartford. The mall was transferred to the special servicer in February 2010 for payment default and the foreclosure proceedings were completed in March 2015. The mall has struggled in recent years as the occupancy at the property dropped to a low of 57% in 2007 but has rebounded to 80% as of September 2014. The special servicer is in the early stages of evaluating the property and determining a disposition strategy for the center.
The third largest contributor to expected losses is the REO asset 10000 San Pedro Office Building, a 19,931 sf office building located in San Antonio, TX. The building transferred to the special servicer in April 2011. The special servicer has worked to renew tenants and raise the occupancy at the building over past few years. The special servicer addressed outstanding property management issues last year and is anticipating on a sale agreement during the first half of 2015.
Although credit enhancement on class H is high, the pool is concentrated with only nine loans remaining and 53% in special servicing. As such, the Rating Outlook on class H is Stable as additional upgrades are not expected. A downgrade is possible in the unlikely event additional loans transfer to special servicing. Class I will be downgraded when losses are incurred.
Fitch upgrades the following class:
--$14.9 million class H to 'Bsf' from 'CCCsf', Outlook Stable assigned.
Fitch affirms the following classes as indicated:
--$8.4 million class I at 'Csf', RE 30%;
--$1.5 million 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%.
The class A-1, A-2, B, C, D, E, F, and G certificates have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (March 31, 2015);
--'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