Fitch Affirms Distressed Ratings in CSFB 2003-C5

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings affirms six distressed classes of Credit Suisse First Boston Mortgage Securities Corp., commercial mortgage pass-through certificates, series 2003-C5. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of the distressed ratings are due to continued concerns with potential losses, most of which are a result of potential occupancy issues with the largest loan in the pool (72.6%). As the pool is concentrated with only six loans remaining, Fitch used a deterministic stress scenario in its analysis.

As of the March 2016 distribution date, the pool's aggregate principal balance has been reduced by 98.6% (including 2.5% of realized losses) to $17.4 million from $1.261 billion at issuance. Cumulative interest shortfalls in the amount of $4.8 million are currently affecting classes P through K.

Of the original 155 loans, six remain, one of which (7.8%) is in special servicing. The non-specially serviced loans have maturity dates in 2017 (72.6%), 2018 (11.6%), 2021 (3.2%), and 2023 (4.9%). Three loans (16.5%) are fully amortizing, and none of the remaining loans are defeased.

The largest loan in the pool, Ravine Development (72.2%), is collateralized by a 154,776 square foot (sf) suburban office building, located in Hanover Township, a suburb 15 miles northwest of Newark, NJ. The subject is fully occupied by Metropolitan Life Insurance with a scheduled lease expiration date in October 2016. The loan matures in January 2017. In January 2015, Metropolitan Life Insurance announced that a new 250,000-sf campus would be built in close proximity to this location and employees relocated upon completion of construction. The sponsor is currently marketing the building to new prospective tenants and indicates that space will be available in the third quarter of 2017. Fitch will continue to monitor the leasing progress, construction timeline for the new building and Metropolitan Life's exit strategy for the subject. Fitch's deterministic stress assumed a valuation based on a potentially vacant building and recent comparable sales transactions in the market.

The specially serviced loan is Waynesburg Centre (6.7%), a 44,688-sf retail center located 11 miles southeast of Canton, Ohio. The property currently lists five suites comprising of 77% of the net rentable area (NRA) as vacant. The special servicer determined that title defect exists that prevents an orderly disposition of the subject. Legal counsel is engaged, and efforts are underway to resolve the outstanding issue through a judicial ruling.

RATING SENSITIVITIES

Fitch analysis employed a deterministic scenario to reflect the pool's exposure to single event risk associated with the largest loan in the pool as well as significant concentration with only six loans remaining. Further upgrades are unlikely as the potential for future performance volatility of the concentrated pool warrants a cap on ratings of the remaining classes.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following classes:

--$6.9 million class J at 'CCCsf'; RE100%;

--$6.3 million class K at 'CCsf'; RE80%;

--$4.2 million class L at 'Dsf'; RE 0%;

--$0 million class M at 'Dsf'; RE0%;

--$0 million class N at 'Dsf'; RE0%;

--$0 million class O at 'Dsf'; RE0%.

Classes A-1, A-2, A-3, A-4, A-1-A, B, C, D, E, F, G, and, H have paid in full. Fitch does not rate the class P. Classes A-SP and A-X are previously withdrawn.

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. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002175

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002175

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/20160407006458/en/

Fitch Ratings
Primary Analyst
Jay Bullie, CFA
Associate Director
+1-312-368-2079
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
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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