Fitch Ratings downgrades, assigns Recovery Estimates, and revises one Rating Outlook on Protective Life 2007-PL, commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.
The downgrades are attributed to increased expected losses including a greater certainty surrounding imminent losses. As of the June 2012 distribution date, the pool's collateral balance has paid down 26% to $752.9 million from $1.02 billion at issuance. There are 175 loans remaining from 199 at issuance. One loan (0.4%) is currently specially serviced.
Fitch modeled losses of 3.15% of the remaining pool; expected losses of the original pool balance are 2.33% with no realized losses to date.
The largest contributor to loss (0.6%) is a 45,500 sf retail property located in Naples, FL which is currently 100% vacant. Per the master servicer, the borrower has filed Chapter 11 bankruptcy and they expect to transfer the loan to special servicing shortly.
The second largest contributor to loss (0.4%) was originally secured by a 53,921 square foot (sf) retail property located in Clio, MI. The loan transferred into special servicing in August 2010 due to imminent default. The property was dark as a result of A&P bankruptcy and rejection of the Farmer Jack's lease which was owned by A&P. Per the special servicer, the loan recently sold out of REO on June 18, 2012, and losses associated with the loan are expected to be reflected in the July 2012 remittance.
Fitch downgrades and assigns Recovery Estimates (RE) to the following classes:
--$2.5 million class O to 'CCC' from 'B-'; RE 100%;
--$3.8 million class P to 'CCC' from 'B-'; RE 100%;
--$2.5 million class Q to 'CCC' from 'B-'; RE 100%.
Fitch also affirms the following classes and revises one Rating Outlook as indicated:
--$129.8 million class A-2 at 'AAA'; Outlook Stable;
--$113.1 million class A-3 at 'AAA'; Outlook Stable;
--$132.9 billion class A-4 at 'AAA'; Outlook Stable;
--$73.3 million class A-1A at 'AAA'; Outlook Stable;
--$101.6 million class A-M at 'AAA'; Outlook Stable;
--$102.9 million class A-J at 'AAA'; Outlook Stable;
--$5.1 million class B at 'AA+'; Outlook Stable;
--$8.9 million class C at 'AA'; Outlook Stable;
--$6.4 million class D at 'AA-'; Outlook Stable;
--$7.6 million class E at 'A+'; Outlook Stable;
--$6.4 million class F at 'A'; Outlook Stable;
--$8.9 million class G at 'A-'; Outlook Stable;
--$7.6 million class H at 'BBB+'; Outlook Stable;
--$7.6 million class J at 'BBB'; Outlook Stable;
--$8.9 million class K at 'BB'; Outlook Stable;
--$5.1 million class L at 'B'; Outlook Stable;
--$2.5 million class M at 'B'; Outlook Stable;
--$2.5 million class N at 'B-'; Outlook revised to Negative from Stable.
Class A-1 paid off on June 15, 2012. Fitch does not rate the $13.9 million class S. Fitch has previously withdrawn the interest-only class IO class.
For additional information on the withdrawal of the ratings on the interest only classes, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21, 2011).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869
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Contacts:
Fitch, Inc.
Primary Analyst
Lisa Cook, +1-212-908-0665
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New York, NY 10004
or
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Mary MacNeill, +1-212-908-0785
Managing Director
or
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Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com
