Fitch Ratings has assigned the following ratings and Rating Outlooks to the Citigroup Commercial Mortgage Trust 2015-101A, Commercial Mortgage Pass-Through Certificates series 2015-101A:
--$96,000,000 class A 'AAAsf'; Outlook Stable;
--$96,000,000 class X-A* 'AAAsf'; Outlook Stable;
--$30,000,000 class X-B* 'A-sf'; Outlook Stable;
--$16,000,000 class B 'AA-sf'; Outlook Stable;
--$14,000,000 class C 'A-sf'; Outlook Stable;
--$20,000,000 class D 'BBB-sf'; Outlook Stable;
--$31,000,000 class E 'BB-sf'; Outlook Stable;
--$19,000,000 class F 'B-sf'; Outlook Stable.
* Interest-only class X-A is equal to the notional balance of class A. Interest-only class X-B is equal to the notional balance of class B and class C.
Fitch does not rate the $4,000,000 class G certificates. Classes A-1 and A-2 have been withdrawn from the deal structure and replaced with class A since Fitch issued its expected ratings on January 15, 2015. The classes above reflect the final ratings and deal structure.
The certificates represent the beneficial ownership in the issuing entity, the primary asset of which is one loan having an aggregate principal balance of $200 million as of the cutoff date and secured by the leasehold interest in the 101 Avenue of the Americas office property in New York, NY. Proceeds of the loan were used to refinance existing debt, fund up-front reserves and pay closing costs. The loan was originated by Citigroup Global Markets Realty Corp. and Barclays Bank PLC.
KEY RATING DRIVERS
High-Quality Manhattan Office Building: 101 Avenue of the Americas consists of a 23-story, class A office building located within the South Broadway/Hudson Square submarket in Manhattan. The property was gut renovated between 2011 and 2013 including upgraded building systems as well as a new lobby, restrooms, and green roof terrace. The building is LEED Silver certified.
Experienced Sponsorship: The loan is sponsored by Edward J. Minskoff Equities, Inc. (EJME), who developed the property in 1990 for a single tenant. The sponsor has recently completed $57 million in renovations and has successfully converted the building into a multi-tenanted class A office tower that is 94.5% leased.
Tenant Concentration and Rollover Risk: The two largest tenants at the property account for a combined 71.2% of the gross leasable area (GLA). During the 20-year loan term, 100% of the leased GLA rolls.
Leasing Momentum: New leasing at the property began in October 2013, with the property's largest tenant signing a 20-year lease for approximately 39.4% of the GLA. Following completion of the renovations, the sponsorship has leased approximately 412,000 sf overall, with an average lease term of nearly 14 years at an average base rent of over $67 psf.
Fitch Leverage: The $200 million loan has a Fitch debt service coverage ratio (DSCR) and loan-to-value (LTV) of 0.95x and 93.1%, respectively, and debt of $459 psf.
RATING SENSITIVITIES
Fitch found that the pool could withstand a 76% decline in value and an approximate 55.3% decrease in the Fitch net cash flow prior to experiencing $1 of loss to any 'AAAsf' rated class.
Fitch evaluated the sensitivity of the ratings of class A (rated 'AAAsf') and found that a 12% decline in Fitch net cash flow (NCF) would result in a one-category downgrade, while a 35% decline would result in a downgrade to below investment grade. The Rating Sensitivity section in the presale report includes a detailed explanation of additional stresses and sensitivities.
Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (September 2014);
--'Global Structured Finance Rating Criteria' (August 2014);
--'Rating Criteria for U.S. Commercial Mortgage Servicers' (February 2014);
--'Counterparty Criteria for Structured Finance Transactions and Covered Bonds' (May 2014).
Applicable Criteria and Related Research:
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=772328
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Rating Criteria for U.S. Commercial Mortgage Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382
Counterparty Criteria for Structured Finance Transactions- Effective 12 March 2012 to 20 May 2012
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=667929
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978855
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