Fitch Affirms Morgan Stanley Capital I Trust, 2011-C2
CHICAGO -- May 17, 2013
Fitch Ratings has affirmed all 11 classes of Morgan Stanley Capital I Trust
2011-C2 commercial mortgage pass-through certificates. A detailed list of
rating actions follows at the end of this release.
KEY RATINGS DRIVERS
The affirmations are based on the stable performance of the underlying
collateral pool. As of the April 2013 remittance, the pool had not experienced
a realized loss. Fitch has not designated any loans as Fitch Loans of Concern,
and there have been no defaulted or specially serviced loans. The pool's
aggregate principal balance has been paid down by 1.9% to $1.190 billion from
$1.214 billion at issuance. Based on full-year financial statements, the pools
overall net operating income (NOI) has improved 1.4% since issuance.
All classes maintain Stable Outlooks. Due to the recent issuance of the
transaction and the stable performance, Fitch does not foresee positive or
negative ratings migration until material economic or asset-level events
change the transaction's overall portfolio-level metrics. Additional
information on rating sensitivity is available in the report 'Morgan Stanley
Capital I Trust, 2011-C2' (June 28, 2011), available at www.fitchratings.com.
The largest loan of the pool (12.62%) is secured by Deerbrook Mall, a
1,203,612 square foot (sf) regional mall, of which 554,461 sf is collateral
for the loan, located in Humble, TX. The mall features four non-collateral
anchors, including Dillard's, Macy's, Sears, and JC Penney. The subject serves
a large trade area that encompasses a population of more than 500,000 with an
average household income of $68,000. The closest competitor is another
regional mall that is owned by the same sponsor more than 21 miles to the
southwest. The occupancy as of September 2012 was 99% versus 98% at issuance
and the third-quarter 2012 reported debt service coverage ratio (DSCR) was
1.62x. The sponsor of the loan is General Growth Properties.
The second largest loan (11.91%) is secured by a 1,125,747 sf regional mall,
Ingram Park Mall, located in San Antonio, TX. The non-collateral anchors of
the mall are Dillard's, Dillard's Home Center, Sears, JC Penney, and Macy's.
The mall benefits from its proximity to the Lackland Airforce Base and
Westover Hills master-planned community. The mall's occupancy as of September
2012 was 89% with a DSCR of 1.59x. The sponsor of the loan is Simon Property
The third largest loan (11.06%) is secured by 383,983 sf office building
located in Midtown Manhattan in New York, NY. Built in 1962, the property is a
23-story office building containing 370,304 sf of office space and 13,679 sf
of ground floor retail space. Major tenants at the location include Scripps
HGTV, Misys International, and Snell & Weisheimer. The subject is less than
one block from a metro subway station and benefits from its easy access to
major New York City transit centers. The property has experienced a slight
decline in performance since issuance, but is still above Fitch underwritten
assumptions, with year-end 2012 occupancy of 98% and a DSCR of 1.73x. The
sponsors are NNA Property Holding Group and Murray Hill Properties Real
Fitch has affirmed the following classes as indicated:
--$43.9 million class A-1 at 'AAAsf'; Outlook Stable;
--$363.5 million class A-2 at 'AAAsf'; Outlook Stable;
--$89 million class A-3 at 'AAAsf'; Outlook Stable;
--$439.5 million class A-4 at 'AAAsf'; Outlook Stable;
--$45.5 million class B at 'AAsf'; Outlook Stable;
--$50.1 million class C at 'Asf'; Outlook Stable;
--$31.9 million class D at 'BBB+sf'; Outlook Stable;
--$50.1 million class E at 'BBB-sf'; Outlook Stable;
--$15.2 million class F at 'BB+sf'; Outlook Stable;
--$12.1 million class G at 'BBsf'; Outlook Stable;
--$15.2 million class H at 'B-sf'; Outlook Stable;
--$936 million class X-A at 'AAAsf'; Outlook Stable;
Fitch does not rate class J and X-B.
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'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
Global Structured Finance Rating Criteria
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.
Jay Bullie, +1-312-368-2079
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
Mary MacNeill, +1-212-908-0785
Sandro Scenga, +1-212-908-0278
Press spacebar to pause and continue. Press esc to stop.