Fitch Ratings has placed 15 classes of Credit Suisse Commercial Mortgage Trust’s commercial mortgage pass-through certificates, series 2006-C4 on Rating Watch Negative as follows:
–$26.7 million class B at ‘AA+’; Rating Watch Negative;
–$64.1 million class C at ‘AA’; Rating Watch Negative;
–$37.4 million class D at ‘AA-‘; Rating Watch Negative;
–$21.4 million class E at ‘A+’; Rating Watch Negative;
–$48.1 million class F at ‘A’; Rating Watch Negative;
–$42.7 million class G at ‘A-‘; Rating Watch Negative;
–$48.1 million class H at ‘BBB+’; Rating Watch Negative;
–$48.1 million class J at ‘BBB’; Rating Watch Negative;
–$53.4 million class K at ‘BBB-‘; Rating Watch Negative;
–$10.7 million class L at ‘BB+’; Rating Watch Negative;
–$16 million class M at ‘BB’; Rating Watch Negative;
–$16 million class N at ‘BB-‘; Rating Watch Negative;
–$5.3 million class O at ‘B+’; Rating Watch Negative;
–$10.7 million class P at ‘B’; Rating Watch Negative;
–$10.7 million class Q at ‘B-‘; Rating Watch Negative.
The Rating Watch Negative is the result of nine loans transferring to special servicing since Fitch’s last rating action, including the third largest loan in the pool (4.60%). A total of 12 loans (6.11%) are in special servicing. Additionally, Fitch considers 50 loans (12.91%), including the specially serviced loans, Fitch Loans of Concern due to low occupancies, low debt service coverage ratios (DSCRs) or other performance problems.
The largest specially serviced loan (4.6%) is secured by a portfolio of 14 multi-family properties located in NV, TX, MD, VA, FL and SC. The loan transferred on Feb. 4, 2009 due to imminent default based on the borrower’s inability to pay debt service and maintain the properties.
The sponsors also have another loan in the pool (0.94%) which is current. The special servicer is in the process of determining a workout strategy. As of June 30, 2008 the servicer reported occupancy was 95.0% and the DSCR was 1.25 times (x).
The second largest specially serviced loan (0.50%) is secured by a boutique hotel in Brooklyn Park, MN. A decline in travel to the area has caused a decline in performance. The loan is 60 days delinquent. As of June 30, 2008 the servicer reported occupancy was 56.0% and the DSCR was 0.68x.
The third largest specially serviced loan (0.42%) is secured by an office building located in Chicago, IL. The loan was transferred when the borrower filed for bankruptcy. The loan is current. As of 30 June, 2008 the servicer reported occupancy was 87.0% and the DSCR was 1.45x.
The remaining nine specially serviced loans (0.60%) have generally transferred to the special servicer due to imminent default because of low occupancies or other performance problems. Three of the loans are Real Estate Owned (REO) which the special servicer is marketing for sale. Three loans are in foreclosure, and for the remaining three loans the special servicer is working to determine a workout strategy.
L.D.