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Wednesday, 20 November 2019

CMBS 2.0 Conduit Deal Gets Ratings Hits as Mall Loan Collateral Weakens

UBS-Barclays Commercial Mortgage Trust, 2012-C2, is taking it on the chin with downgrades from Fitch Ratings because of its hefty exposure to the shopping mall sector. Four mall loans, which account for 27.4 percent of the deal's $900.2 million remaining balance, have weakened as a result of store closures at their collateral properties.

Commercial Real Estate Direct Staff Report

UBS-Barclays Commercial Mortgage Trust, 2012-C2, with a 38.3 percent exposure to the ailing shopping mall sector, is taking it on the chin as most of the mall loans in its collateral pool have weakened.

The transaction, which originally had a $1.2 billion balance, has paid down to $900.2 million. It hasn't suffered any losses yet, but has accumulated just less than $630,000 of interest shortfalls.

Six of its remaining loans, with a total balance of $345.1 million, are backed by regional malls. And Fitch Ratings classifies four of those, with a total balance of $246.4 million, or 27.4 percent of the deal's remaining balance, as Fitch Loans of Concern, or FLOCs. It's downgraded four of the CMBS deal's bond classes because the losses it now expects to result from the mall loans have increased.

It downgraded the deal's:

- $24.3 million class D, to BBB from BBB+;

- $47.1 million class E, to B from BBB-;

- $22.8 million class F, to CCC from BB-; and

- $24.3 million class G, to CC from B-

While none of the four mall loans are in special servicing, three are on servicer watchlists. Nonetheless, each collateral property has lost at least one anchor tenant, and all have seen a deterioration in financial performance since their respective loans were securitized.

At the top of the FLOC list is the deal's largest loan: the $86.1 million mortgage against 518,480 square feet at the 783,280-sf Crystal Mall in Waterford, Conn., which is about 45 miles south of Hartford, Conn. The mall, which is owned by a venture of Simon Property...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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