Fitch Ratings upgrades PNC Mortgage Acceptance Corp. (PNCMAC 1999-CM1) commercial mortgage pass-through certificates, series 1999-CM1. A list of the ratings follows at the end of this press release.
The upgrade reflects sufficient credit enhancement to offset Fitch expected losses from specially serviced loans and adverse selection due to increasing concentrations as a result of payoffs. As of the July 2011 remittance report, the transaction has paid down 95.8% to $32.2 million from $760.4 million at issuance. Sixteen of the original 207 loans remain outstanding. Five loans (43.6%) are in special servicing, and two loans (5.5%) are fully defeased. Interest shortfalls are affecting classes B-7 through D.
Fitch modeled losses of 11.28% of the remaining pool. Fitch expects losses to deplete class B-8.
The largest contributor to Fitch modeled losses is secured by a 61,028 square foot (sf) medical office complex located in Decatur, GA. The loan transferred to special servicing due to a maturity default and modification negotiations have been set-back several times by tenant losses. The property is currently being marketed for leasing and sale.
The second largest contributor to Fitch modeled losses is a 12,817 sf office building located in Las Vegas, NV. The special servicer foreclosed on the loan in April 2010 and continues to market the property for sale. Fitch expects losses upon liquidation of the asset based on recent valuations obtained by the special servicer.
Fitch upgrades the following ratings and revises Outlooks as indicated:
--$10.5 million class B-6 to 'Bsf' from 'B-sf'; Outlook to Stable from Negative.
Class B-8 remains at 'Dsf/RR6' due to realized losses.
Fitch does not rate classes B-3, B-4, B-5, B-7, C, or D.
Classes A-1A, A-1B, A-2, A-3, A-4, B-1, and B-2 have all paid in full.
In addition, Fitch withdraws the rating on the interest-only class S. (For additional information on the withdrawal of the ratings on these classes, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010.)
Additional information on Fitch's criteria is available in the Nov. 17, 2010 report, 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance then CMBS then Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 13, 2010);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Nov. 17, 2010).
Applicable Criteria and Related Research:
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Contacts:
Fitch Ratings
Primary Analyst
Benson Thomas, +1-212-908-0645
Associate
Director
Fitch, Inc.
One State Street Plaza
New York, NY
10004
or
Committee Chairperson
Adam Fox, +1-212-908-0869
Senior
Director
or
Media Relations:
Sandro Scenga,
+1-212-908-0278
Email: sandro.scenga@fitchratings.com
