Fitch Affirms BBCMS Trust 2015-SLP

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed five classes of BBCMS Trust 2015-SLP commercial mortgage pass-through certificates series 2015-SLP (BBCMS 2015-SLP). A full list of rating actions follows at the end of this ratings action commentary.

KEY RATING DRIVERS

The affirmations reflect the overall stable performance of the pool. The servicer provided year to date (YTD) Sept. 2015 financials for the portfolio and trailing 12 months (TTM) STR reports for 55% of the assets. Average RevPAR penetration for hotels reporting was over 100%. Fitch expects to review the transaction again when year-end 2015 financial statements become available.

The collateral consists of a diverse and granular pool of 127 limited service, extended stay and select service hotels located in 21 states. Hotel flags include Fairfield Inn, Fairfield Inn & Suites, Residence Inn, Springhill Suites, Courtyard, Hampton Inn, Staybridge Suites, Homewood Suites, Comfort Suites, and Townplace Suites. No single asset comprises more than 2.3% of the pool. The portfolio does include approximately 20% exposure to certain energy industry dependent markets in Texas, Colorado, and Oklahoma. Fitch remains concerned about the impact that recent volatility in the oil and gas industry may have on overall economic performance in these markets. Additionally, three properties (3%) are located in Bismarck, ND, which while not within the troubled Bakken shale region, could see some collateral impact from the declining energy market. Fitch's analysis applied additional credit loss to account for the potential negative performance impact.

Since issuance, eight properties (3.2% of the pool) from the original pool of 135 hotels have been released resulting in pay down of $18.4 million to the senior class. Releases have included five properties in energy dependent markets.

The transaction is sponsored by an affiliate of Starwood Capital Group (Starwood). Starwood is a global private investment firm with a core focus on real estate. Starwood created Starwood Hotels & Resorts Worldwide, Inc. in 1995 and has since continued to acquire and operate hotels throughout the world.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. Should portfolio performance remain stable or improve and properties continue to be released, classes C through E could be upgraded in the future. All classes could be subject to downgrade should performance decline. Fitch will continue to monitor the impact to the portfolio on the declining energy sector.

Additional information on rating sensitivity is available in the report BBCMS Trust 2015-SLP' (March 12, 2015), available at www.fitchratings.com

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

--$181.6 million class A at 'AAAsf'; Outlook Stable;

--$68 million class B at 'AAAsf'; Outlook Stable;

--$55.1 million class C at 'A+sf'; Outlook Stable;

--$75.6 million class D at 'BBB-sf'; Outlook Stable;

--$76.3 million class E at 'BB-sf'; Outlook Stable.

Fitch does not rate Class F and V.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

BBCMS Trust 2015-SLP -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863503

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1001097

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1001097

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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 DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160317006108/en/

Fitch Ratings
Primary Analyst
Stacey McGovern
Director
+1-212-908-0722
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BofA lists top 5 themes driving next $1tn in incremental semi sales
• Rubio to visit Gulf states amid Iran deal concerns
• Green Dot and CommerceOne shareholders approve acquisition deal