Fitch Places 1 Class of COMM 2001-J1 on Rating Watch Negative; Outlook Revised.
--$13.6 million class H 'A+'.
In addition, Fitch has revised the Rating Outlook to Negative from Stable on the following class:
--$13.6 million class G 'AA+'.
The Rating Watch Negative placement and the revised Rating Outlook reflect the recent transfer of the second largest non-defeased loan, Boise Towne Square (12.4%), to special servicing. The loan transferred to special servicing in April 2009 due to the inclusion of the property in the bankruptcy filing of the loan's sponsor, General Growth Properties (GGP). Due to the default, Fitch no longer considers the loan investment grade. The Rating Watch Negative status represents the potential for interest shortfalls and possible downgrades due to the loss of the shadow rating.
Fitch considers the commercial mortgage backed security (CMBS) loans included in GGP's bankruptcy filing as Loans of Concern given the uncertainty associated with the corporate bankruptcy. In addition, those loans with investment-grade shadow ratings are no longer considered investment grade.
Boise Towne Square is secured by 597,338 square feet (sf) of a 1.17 million sf regional mall in Boise, ID. Anchor tenants include J.C. Penny, Sears, Dillards, and Macy's, of which only Macy's is collateral for the loan. In-line occupancy was 95.1% as of December 2008, similar to issuance. The servicer-reported debt service coverage ratio (DSCR) as of September 2008 was 2.52 times (x).
Fitch will continue to monitor the performance of the GGP assets in addition to the progress of the bankruptcy proceedings. As the developing situation becomes clearer and as property performance warrants, Fitch will take additional ratings actions as appropriate. For more information on the GGP bankruptcy filing, please reference the Fitch press release entitled 'Fitch Revises Outlook to Negative on 20 U.S. CMBS Deals after GGP Bankruptcy' dated April 21, 2009, and available on the Fitch Ratings web site at 'www.fitchratings.com'.
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|Date:||May 1, 2009|
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