Fitch Ratings has assigned the following ratings and Rating Outlooks to Cantor Commercial Real Estate CFCRE 2016-C3 Mortgage Trust commercial mortgage pass-through certificates:

--$29,088,000 class A-1 'AAAsf'; Outlook Stable;

--$40,514,000 class A-SB 'AAAsf'; Outlook Stable;

--$200,000,000 class A-2 'AAAsf'; Outlook Stable;

--$222,884,000 class A-3 'AAAsf'; Outlook Stable;

--$528,543,000b class X-A 'AAAsf'; Outlook Stable;

--$36,057,000 class A-M 'AAAsf'; Outlook Stable;

--$37,815,000 class B 'AA-sf'; Outlook Stable;

--$37,815,000b class X-B 'AA-sf'; Outlook Stable;

--$37,816,000 class C 'A-sf'; Outlook Stable;

--$37,816,000b class X-C 'A-sf'; Outlook Stable;

--$41,334,000a class D 'BBB-sf'; Outlook Stable;

--$41,334,000ab class X-D 'BBB-sf'; Outlook Stable;

--$10,553,000a class E 'BB+sf'; Outlook Stable;

--$10,553,000ab class X-E 'BB+sf'; Outlook Stable;

--$8,795,000a class F 'BB-sf'; Outlook Stable;

--$8,795,000ab class X-F 'BB-sf'; Outlook Stable;

--$7,915,000a class G 'B-sf'; Outlook Stable;

--$7,915,000ab class X-G 'B-sf'; Outlook Stable.

(a) Privately placed and pursuant to Rule 144A.

(b) Notional amount and interest-only.

Fitch does not rate the $30,780,602 class H certificates or the $30,780,602 class X-H certificates.

The certificates represent the beneficial ownership interest in the trust, primary assets of which are 38 loans secured by 67 commercial properties having an aggregate principal balance of approximately $703.6 million as of the cut-off date. The loans were contributed to the trust by Cantor Commercial Real Estate Lending, L.P., Societe Generale, and Liberty Island Group I LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 85.4% of the properties by balance, cash flow analysis of 85.8%, and asset summary reviews on 85.8% of the pool.

KEY RATING DRIVERS

High Fitch Leverage: The pool has higher leverage statistics than other recent Fitch-rated fixed-rate multiborrower transactions. The pool's Fitch debt service coverage ratio (DSCR) of 1.12x is lower than the 2015 and 2014 averages of 1.18x and 1.19x, respectively. The pool's Fitch loan-to-value (LTV) of 109.5% is higher than the 2015 and 2014 averages of 109.3% and 106.2%, respectively.

Below-Average Amortization: Twelve loans (36.1% of the pool) are full-term interest-only, and nine loans representing 23.9% of the pool are partial interest only. The pool is scheduled to amortize by 10.5% over the term of the loans, lower than the 2014 and 2015 averages of 12.0% and 11.7%, respectively.

Low Hospitality Exposure: Only three loans that make up 5.1% of the total pool are collateralized by hotel assets, which is much lower than the average hotel exposure of 17.0% in 2015. The pool is concentrated in retail with 34.3% exposure compared to the 2015 average of 27.0% retail exposure.

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 6.6% below the most recent net operating income (NOI; for properties for which a recent NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates.

Fitch evaluated the sensitivity of the ratings assigned to CFCRE 2016-C3 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'BBBsf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 11 - 12.

DUE DILIGENCE USAGE

Fitch was provided with due diligence information from KPMG. The due diligence focused on a comparison and re-computation of certain characteristics with respect to each of the 38 mortgage loans. Fitch considered this information in its analysis and the findings did not have an impact on our analysis.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744175

Criteria for Analyzing Multiborrower U.S. and Canadian Commercial Mortgage Transactions (pub. 01 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874795

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Rating Criteria for Structured Finance Servicers (pub. 23 Apr 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864375

Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

CFCRE 2016-C3 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=876221

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=998630

ABS Due Diligence Form 15E 1

https://www.fitchratings.com/creditdesk/press_releases/content/ridf15E_frame.cfm?pr_id=998630&flm_nm=15e_998630_1.pdf

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=998630

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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