Fitch Ratings has affirmed and assigned Rating Outlooks to Citigroup Commercial Mortgage Securities mortgage pass-through certificates, series 2005-EMG, as follows:
–$66.5 million class A-2 at ‘AAA’; Outlook Stable;
–$42.5 million class A-3 at ‘AAA’; Outlook Stable;
–$199 million class A-4 at ‘AAA’; Outlook Stable;
–Interest-only class X at ‘AAA’; Outlook Stable;
–$46 million class A-J at ‘AAA’; Outlook Stable;
–$7.2 million class B at ‘AAA’; Outlook Stable;
–$2.7 million class C at ‘AAA’; Outlook Stable;
–$5.4 million class D at ‘AA’; Outlook Stable;
–$1.8 million class E at ‘AA-‘; Outlook Stable;
–$3.6 million class F at ‘A’; Outlook Stable;
–$1.8 million class G at ‘BBB’; Outlook Stable;
–$3.6 million class H at ‘BBB-‘; Outlook Stable;
–$8.1 million class J at ‘BB+’; Outlook Stable;
–$2.7 million class K at ‘BB’; Outlook Negative;
–$1.8 million class L at ‘BB-‘; Outlook Negative.
The $1.8 million class M remains at ‘B/DR1’.
Class A-1 has paid in full.
The affirmations are warranted due to stable performance of the pool since Fitch’s last rating action. Rating Outlooks reflect the likely direction of any rating changes over the next one to two year. As of the March 2009 distribution date, the pool has paid down 45.3%, to $394.7 million from $722.1 billion at issuance. There are currently no specially serviced loans.
The accelerated pay down demonstrated by this transaction is due to approximately 66% of the pool having more than six years of seasoning, with a shorter weighted average remaining amortization schedule than typical conduit transactions.
The largest loan in the pool (7.6%) is secured by a multifamily property located in midtown Manhattan. The servicer-reported occupancy as of April 2008 was 94.8% with a year end (YE) 2008 debt service coverage ratio (DSCR) of 2.03 times (x).
The largest Fitch Loan of Concern (3.5%) is by a retail center located in Scarsdale, NY. One tenant, Linens ‘n Things, representing 25% of the gross leaseable area (GLA), has vacated its space after liquidation. The servicer-reported occupancy as of December 2008 was 69%, compared to 81% at origination.
L.D.