NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of Americold 2010 LLC Trust commercial mortgage pass-through certificates, series 2010-ART. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are the result of overall stable performance. The servicer reported net cash flow (NCF) debt service coverage ratio (DSCR) decreased slightly year-over-year to 2.12x as of December 2015 from 2.16x as of year-end (YE) 2014. Occupancy at the property dipped slightly to 68% as of November 2015 from 75% as of September 2014. Declines in performance have been offset by amortization of approximately 14% since issuance. One property was released in November 2014 and the proceeds went to pay down class A-2FL.
The transaction represents a securitization of the beneficial interest in a 10-year, cross-collateralized first lien mortgage secured by 53 temperature-controlled warehouses (also referred to as cold storage facilities) owned collectively by three property companies (the PropCo borrowers). The collateral for the note also includes the PropCo borrowers' interest in the leases and rents, three operating companies' (the OpCo borrowers) interest in the handling fees and contract rights in the properties, and the assignment of the collateral accounts and the rate cap.
The loan is expected to mature in January 2021. The Fitch maturity stressed loan-to-value is approximately 63% based on capitalization of the Fitch-adjusted net cash flow at a rate of 10.11%
The Stable Rating Outlooks indicate that rating changes are unlikely over the next one to two years. Should occupancy or portfolio cash flow deteriorate materially, downgrades are possible. Upgrades are unlikely given the specialized nature of the collateral and sponsor concentration.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$81.7 million class A-1 at 'AAAsf'; Outlook Stable;
--$150.3 million class A-2-FX at 'AAAsf'; Outlook Stable;
--$75.5 million class A-2-FL at 'AAAsf'; Outlook Stable;
--$60 million class B notes at 'AAsf'; Outlook Stable;
--$62.4 million class C notes at 'Asf'; Outlook Stable;
--$82.6 million class D notes at 'BBB-sf'; Outlook Stable.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)
Exposure Draft: Counterparty Criteria for Structured Finance and Covered Bonds - Derivative Addendum (pub. 14 Apr 2016)
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
Dodd-Frank Rating Information Disclosure Form