CHICAGO & CARACAS, Venezuela--(BUSINESS WIRE)--Fitch Ratings affirms Asset Securitization Corp.'s commercial mortgage pass-through certificates, series 1996-D2, and assigns a Loss Severity Rating and Outlook as follows:
--$11.2 million A-4 class at 'A+sf/LS3;' Outlook Stable.
Affirmations are due to the pool's stable performance and sufficient credit support to absorb Fitch expected losses from specially serviced loans and other non-defeased loans in the pool. Expected losses for the pool are 5.87% of the current transaction balance. As of the February 2010 distribution date, the pool's certificate balance has paid down 95.99% to $46.5 from $1.6 billion at issuance. There are 12 of the original 137 loans remaining in the transaction, five of which have defeased (29.4% of the current transaction balance). Interest shortfalls are currently affecting class B-B1, which is not rated by Fitch.
There are three specially serviced loans (54% of the pool), all of which are 90 days delinquent. The largest specially serviced loan (25.1%) is collateralized by three skilled nursing facilities in Chicago, IL. The special servicer is evaluating workout options and include a discounted payoff and note sale. The most recent appraisal value is higher than the outstanding debt and therefore, losses may be limited.
Fitch withdraws the rating on the interest-only class A-CS2 (For additional information on the withdrawal of the rating on class X, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010.)
Additional information on Fitch's amended criteria for analyzing U.S. fixed rate CMBS 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 >> CMBS >> 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:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208
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