Fitch Affirms CFCRE 2011-C2

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 11 classes of Cantor Commercial Real Estate (CFCRE) Commercial Mortgage Trust 2011-C2 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect stable portfolio performance since issuance. The pool has experienced no realized losses to date. Fitch has designated five loans (5.3% of the pool) as Fitch Loans of Concern including two specially serviced loans (2% of the pool).

As of the September 2015 distribution date, the pool's aggregate principal balance has been reduced by 8.1% to $711.2 million from $774.1 million at issuance. Per the servicer reporting, four loans (14.8% of the pool) are defeased. Interest shortfalls are currently affecting the non-rated class.

The largest loan in the pool (13.2%) is the RiverTown Crossings Mall, a 637,814 square foot (sf) interest in a 1.3 million sf regional mall located in Grandville, MI. Anchors include: Macy's, Younkers, Sears, JC Penney, and Kohl's (non-collateral). As of year-to-date (YTD) June 2015, the servicer-reported collateral occupancy and debt service coverage ratio (DSCR) was 92.6% and 2.08x, respectively, compared to 96.1% and 2.13x at year-end (YE) 2014.

The largest Fitch Loan of Concern (1.5% of the pool) is a specially serviced asset secured by a 150-key limited service hotel located near Harrah's Louisiana Downs Racetrack/Casino in Bossier, LA. The loan transferred to special servicing in February 2015 due to imminent default as the counterparty for its room guaranty agreement filed for bankruptcy. The property became Real Estate Owned (REO) in September 2015. The special servicer has indicated it is still evaluating its disposition plan.

RATING SENSITIVITIES

The Stable Outlooks reflect stable performance and increased credit enhancement. The collateral has a Fitch stressed weighted average Loan to Value (LTV) of 75.1%. Upgrades would be considered should the pool continue to delever and stable performance continues; the pool is concentrated with 37.5% scheduled to mature in 2016 and 48% of the pool consisting of retail properties. Downgrades would be considered if there were increased delinquencies or loans transferred to special servicing.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following classes:

--$329.9 million class A-2 at 'AAAsf', Outlook Stable;

--$34.1 million class A-3 at 'AAAsf', Outlook Stable;

--$114 million class A-4 at 'AAAsf', Outlook Stable;

--$556.4 million class X-A* at 'AAAsf'; Outlook Stable;

--$78.4 million class A-J at 'AAAsf', Outlook Stable;

--$28.1 million class B at 'AAsf', Outlook Stable;

--$31.9 million class C at 'Asf', Outlook Stable;

--$18.4 million class D at 'BBB+sf', Outlook Stable;

--$28.1 million class E at 'BBB-sf', Outlook Stable;

--$10.6 million class F at 'BBsf', Outlook Stable;

--$9.7 million class G at 'Bsf', Outlook Stable.

*Notional amount and interest only

Fitch does not rate the $27,093,416 class NR certificates. Class A-1 is paid in full.

Additional information is available at www.fitchratings.com.

Applicable Criteria

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

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

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=991285

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=991285

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/20150924006178/en/

Fitch Ratings
Primary Analyst
Tiffany Pierce
Associate Director
+1-212-908-9107
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, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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