NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms all classes of GE Commercial Mortgage Corporation, series 2005-C3 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations are the result of stable overall pool performance since Fitch's last rating action. Fitch expected losses are 7.1% of the current balance or 4.9% of the original pool, including losses incurred to date (0.9%). Currently, there are two loans in special servicing (5.9%) including the fourth largest in the transaction (5.4%). Three loans (2.5%) are defeased.
As of the July 2013 distribution date, the pool's aggregate principal balance has paid down 44.3% to $1.2 billion from $2.1 billion at issuance, including the 0.9% in realized losses. Cumulative interest shortfalls total $3 million and affect classes P and the non-rated class Q.
The largest contributors to loss are 123 William Street (6.9%), One Main Place (5.4%) and Portland Storage (0.5%).
123 William Street is the third largest loan in the pool and secured by a 500,000 sf office property located in Manhattan on William Street between Fulton and John. The loan had previously been in special servicing after the Superintendent of Insurance vacated eight floors. The loan was split into an A/B Note structure, with an A Note of $77.9 million and B Note of $5.3 million. The loan has returned to the master servicer. The latest reported occupancy was 55% as of the January 2013 rent roll.
One Main Place is the largest loan in special servicing. The loan is secured by a 1 million square foot (sf) office building located in downtown Dallas, TX and is currently categorized as nonperforming matured. Current occupancy is approximately 64%. The borrower continues its efforts to sign new leases and renewals. The special servicer continues to consider various workout options, including a note sale and foreclosure. An appraisal reduction based on an updated valuation has been performed.
Portland Storage is the second largest loan in special servicing. The collateral consists of two self-storage properties totaling 1,150 units located in Spokane, WA. The special servicer continues to evaluate workout options.
RATING SENSITIVITIES
Classes A-6 through F have Stable Outlooks as no rating actions on these classes are anticipated. If additional loans transfer to special servicing and/or if expected losses increase, classes G and H could be downgraded.
Fitch affirms the ratings, maintains the Outlooks and Recovery Estimates for the following classes:
--$43.6 million class A-6 at 'AAAsf'; Outlook Stable;
--$43.8 million class A-AB at 'AAAsf'; Outlook Stable;
--$386.7 million class A-7A at 'AAAsf'; Outlook Stable;
--$55.2 million class A-7B at 'AAAsf/'; Outlook Stable;
--$263.2 million class A-1A at 'AAAf'; Outlook Stable;
--$161.4 million class A-J at 'AAsf'; Outlook Stable;
--$13.2 million class B at 'AAsf'; Outlook Stable;
--$29.1 million class C at 'Asf'; Outlook Stable;
--$21.2 million class D at 'BBBsf'; Outlook Stable;
--$34.4 million class E at 'BBB-sf'; Outlook Stable;
--$18.5 million class F at 'BBsf'; Outlook Stable;
--$23.8 million class G at 'BBsf'; Outlook Negative.
--$21.2 million class H at 'B-sf'; Outlook Negative;
--$31.7 million class J at 'CCCsf'; RE 30%;
--$7.9 million class K to 'CCsf'; RE 0%;
--$7.9 million class L to 'Csf'; RE 0%;
--$10.6 million class M to 'Csf'; RE 0%
--$2.6 million class N at 'Csf'; RE 0%;
--$7.9 million class O at 'Csf'; RE 0%.
The $7.9 million class P and $4.2 million class Q are not rated by Fitch. Classes A-1, A-2, A-3FX, A-3FL, A-4, and A-5 have paid in full. Fitch previously withdrew the ratings on the interest only classes X-C and X-P.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).
Applicable Criteria and Related Research:
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=797957
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