Fitch Ratings has assigned the following ratings and Ratings Outlooks to NRTH 2024-PARK commercial mortgage pass-through series 2024-PARK.
RATING ACTIONS
Entity / Debt
Rating
Prior
NRTH 2024-PARK
A
LT
AAAsf
New Rating
HRR
LT
AAsf
New Rating
AA(EXP)sf
Page
of 1
VIEW ADDITIONAL RATING DETAILS
(a) Since Fitch published its expected ratings onFeb. 28, 2024 , the balances for class A and HRR have been finalized. The initial certificate balances for class A and HRR have not changed since Fitch published its expected ratings onFeb. 28, 2024 . The classes above reflect the final ratings and deal structure.
(b) Non-offered horizontal risk retention interest representing approximately 5.0 % of the estimated fair value of all classes.
Transaction Summary
The NRTH 2024-PARK commercial mortgage pass-through certificates series 2024-PARK (NRTH 2024-PARK) represent the beneficial interest in a trust that holds a two-year, floating-rate, IO
Whole loan proceeds will be used to refinance
KEY RATING DRIVERS
Fitch
Low Fitch Leverage: The
Strong Sales Performance and Low Occupancy Costs: The property reported strong overall sales of approximately
High Quality Retail Asset in Core Location: The property is a 1.9 million sf, super-regional mall with over 200 retail shops, restaurants and entertainment tenants. It is centrally located in the northern portion of
The property is anchored by Dillard's,
Long-Term Ownership and Management: Since 1965, the property has been owned (in whole or in part) and operated by two generations of the Nasher/Haemisegger family. In 2014,
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Defined stresses describe the impact of two defined stress assumptions: an up-stress, reflecting a 10% increase to Fitch's NCF at the time of issuance; and NCF reduced 10% from Fitch's NCF at the time of issuance. The following table shows the impact on ratings for each additional defined stress to NCF.
Original Rating: 'AAAsf' / 'AAsf'
10% NCF Decline: 'AAAsf' / 'AAsf'
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Improvement in cash flow increases property value and capacity to meet its debt service obligations. The table below indicates the model implied rating sensitivity to changes to the same one variable, Fitch NCF:
Original Rating: 'AAAsf' / 'AAsf';
10% NCF Increase: 'AAAsf' / 'AAAsf'.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as prepared by
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.
REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS
A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.
A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Additional information is available on www.fitchratings.com
(C) 2024 Electronic News Publishing, source