Fitch Affirms COMM 2006-C8

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed all classes of COMM Mortgage Trust series 2006-C8 commercial mortgage pass-through certificates. The Rating Outlooks remain Stable. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of the overall stable pool performance since Fitch's last review. Fitch modeled losses of 8.3% for the remaining pool; expected losses on the original pool balance total 11%, including $215.7 million (5.7% of the original pool balance) in realized losses to date. Fitch has designated 19 loans (24%) as Fitch Loans of Concern, which includes 5 specially serviced assets (6.3%).

As of the July 2015 distribution date, the pool's aggregate principal balance has been reduced by 36.8% to $2.38 billion from $3.78 billion at issuance. Eighteen loans (27.9%) are defeased, four (21.4%) of which are among the top 15 loans. Interest shortfalls totaling $26.8 million are currently affecting classes C through S.

The largest contributor to expected losses is a loan (2.3% of the pool) secured by a recreational vehicle resort community (a portfolio of 12 at issuance) located in Saltlick, PA (2.3%). The property consists of 885 units. The other 11 properties have previously been released or liquidated as real estate owned assets (REO). The servicer is in the process of foreclosing this property. Based on servicer provided asset valuations, significant losses are expected upon liquidation of the property.

The second largest contributor to expected losses is 405,000 square feet (sf) of a 689,601 sf regional mall located in Clovis, CA (3.2% of the pool). The loan was transferred to the special servicing in September 2013 due to payment default and has been REO since January 2015. As of June 2015, the property was 83% occupied, compared to 87.9% at issuance. The servicer is working to lease up the vacant space.

RATING SENSITIVITIES

All investment rated classes are expected to remain stable and no near-term rating actions are anticipated. In addition, the distressed classes (rated below 'B') may be subject to further rating actions as losses are realized.

Fitch has affirmed the following classes:

--$1.07 billion class A-4 at 'AAAsf'; Outlook Stable;

--$448 million class A-1A at 'AAAsf'; Outlook Stable;

--$377.6 million class A-M at 'AAsf'; Outlook Stable;

--$302.1 million class A-J at 'CCCsf'; RE 95%;

--$28.3 million class B at 'CCsf'; RE 0%;

--$42.5 million class C at 'CCsf'; RE 0%;

--$37.8 million class D at 'CCsf'; RE 0%;

--$23.6 million class E at 'Csf'; RE 0%;

--$28.3 million class F at 'Csf'; RE 0%;

--$25.2 million class G at 'Dsf'; RE 0%;

--$0 class H at 'Dsf'; RE 0%;

--$0 class J at 'Dsf'; RE 0%;

--$0 class K at 'Dsf'; RE 0%;

--$0 class L at 'Dsf'; RE 0%;

--$0 class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%;

--$0 class O at 'Dsf'; RE 0%.

The classes A-1, A-2A, A-2B, A-3 and A-AB have paid in full. Fitch does not rate the class P, Q and S certificates. Fitch previously withdrew the ratings on the interest-only class X-P and X-S certificates.

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=988130

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=988130

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/20150717005734/en/

Fitch Ratings
Amy Gan
Director
+1-212-908-9143
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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