Fitch Ratings affirms four classes of Deustche Bank Securities COMM 2010-C1 commercial mortgage pass-through certificates (COMM 2010-C1).
The Rating Outlook for class D has been revised to Stable from Negative.
Fitch Ratings has affirmed seven classes of
RATING ACTIONS
Entity / Debt
Rating
Prior
COMM 2010-C1
C 12622DAJ3
LT
PIFsf
Paid In Full
Asf
D 12622DAK0
LT
BBsf
Affirmed
BBsf
E 12622DAL8
LT
CCCsf
Affirmed
CCCsf
F 12622DAM6
LT
CCsf
Affirmed
CCsf
G 12622DAN4
LT
CCsf
Affirmed
CCsf
JPMCC 2011-C3
B 46635TAU6
LT
Asf
Affirmed
Asf
C 46635TAX0
LT
BBBsf
Affirmed
BBBsf
D 46635TBA9
LT
BBsf
Affirmed
BBsf
Page
of 2
VIEW ADDITIONAL RATING DETAILS
Transaction Summary
COMM 2010-C1:
There is one loan remaining in the pool,
The loan was modified by the special servicer in
As of
Fitch's loss and recovery analysis considered the updated valuations from the special servicer, as well as the continued amortization of the loan through the extended maturity date. Loss estimates were based on a broker opinion of value with an applied stress which resulted in an implied cap rate of approximately 19%. Recoveries were also reviewed using a sensitivity assumption applying a 25% cap rate.
The revision of the Outlook of class D to Stable reflects the improved recovery assumptions considering the de-levering of the loan, the continued performance post-modification. At the current loan balance, recoveries required to pay off class D using the total pledged collateral of 707,110 sf are
JPMCC 2011-C3:
Two regional malls remain, both of which are sponsored by The Pyramid Companies. The loans were modified in
Collateral occupancy declined to 73.6% as of the
Fitch's loss and recovery analysis was based on a discount to an updated valuation provided by the special servicer with an implied cap rate of approximately 17%. Recoveries were also reviewed using a sensitivity assumption applying an outsize loss of 50%.
Collateral occupancy fell to 58% as of
YE 2020 inline sales fell to
Fitch's loss and recovery analysis was based on an updated valuation provided by the special servicer with an implied cap rate of approximately 33%.
The revision of the Outlooks on classes B and C to Stable reflects the continued performance post-modification of the two loans and review of the recovery assumptions based on the updated valuations. Recoveries on both properties combined to pay off classes B and C are
The Outlook may also be revised to Stable if updated information indicating stable to improved performance is received. Recoveries required on class D are
KEY RATING DRIVERS
High Expected Losses; Insufficient Credit Enhancement to Junior Classes: Both transactions' expected losses remain stable from the previous Fitch rating actions. The transactions are concentrated with either one or two mall assets remaining. All loans have been modified and losses are expected to impact or significantly erode credit enhancement to the junior classes with distressed ratings.
High Credit Enhancement to Senior Classes: Both transactions' most senior bonds have a high likelihood of recovery given the amortization and de-levering, and/or performance stabilization.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades are possible if performance of the malls deteriorate or the loans default prior to the extended maturity dates.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Upgrades are not expected, but possible with better than expected performance of the remaining malls.
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
Additional information is available on www.fitchratings.com
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