Fitch Ratings affirms three classes of Heller Financial Commercial Mortgage Asset Corp. commercial mortgage pass through certificates, series 1999PH-1. A detailed list of rating actions follows at the end of this press release.
The affirmations reflect stable performance of the pool and sufficient credit enhancement after consideration for defeasance and anticipated paydown from maturing loans. As of the June 2012 distribution date, the pool's certificate balance has paid down 93.4% to $66.3 million from $1 billion at issuance.
There are 12 remaining loans from the original 190 loans at issuance. Of the remaining loans, five loans (27.5%) have defeased. Additionally, two loans (6%) are fully amortizing and six loans (76.7%) are ARD loans.
The largest loan in the pool is a 244,244 sf retail and entertainment center in North Myrtle Beach, SC (40.3% of the transaction). Performance of the property has improved, with occupancy increasing to 97% as of March 2012 from 91% at YE 2010 and DSCR increasing to 1.21x from 1.09x in the same period.
Fitch affirms the following classes and revises Outlooks as indicated:
--$17.7 million class G at 'AAAsf'; Outlook Stable;
--$35.3 million class H at 'A-sf'; Outlook to Stable from Negative;
--$16.4 million class J at 'Dsf'; RE 80%.
Fitch does not rate class N. Classes A-1, A-2, B, C, D, E and F have paid in full. Fitch maintains the rating of 'Dsf, RE 0%' on classes K, L and M. Additionally, Fitch has previously withdrawn the rating of the interest only class X (for additional information, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010).
Additional information on Fitch's criteria for analyzing U.S. fixed rate CMBS is available in the Dec. 21, 2011 report, 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions,' which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
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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Fitch Ratings
Brian Bertsch, +1-212-908-0549
Media Relations,
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brian.bertsch@fitchratings.com
or
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Analyst:
David Ro, +1-312-368-3132
Associate Director
Fitch,
Inc.
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Chicago, IL 60602
or
Committee
Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director