NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken various rating actions on already distressed U.S. commercial mortgage-backed securities (CMBS) bonds. Fitch downgraded 12 bonds in eight transactions to 'D' as the bonds have incurred a principal write-down. The bonds were all previously rated 'CC' or 'C', which indicates that losses were probable.
Fitch also affirms the ratings on three classes in one transaction. The three classes are rated 'Dsf' based on previously 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the last rated tranches of a transaction are in default and rated 'D', the defaulted ratings will be automatically withdrawn within 11 months of the date of the previous rating action.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 Takes Various Actions on Distressed Classes in 9 U.S. CMBS Transactions', or by clicking on the link above.
While the bonds that have defaulted are not expected to recover any material amount of lost principal in the future, there is a limited possibility this may happen. In this unlikely scenario, Fitch would further review the affected class.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at 'www.fitchratings.com'.
Fitch Takes Various Actions on Distressed Classes in 9 U.S. CMBS Transactions
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)
Dodd-Frank Rating Information Disclosure Form