Fitch Upgrades 2 Classes of BSCMS 1999-WF2

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has upgraded two and affirmed three classes of Bear Stearns Commercial Mortgage Securities Trust (BSCMS) commercial mortgage pass-through certificates series 1999-WF2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades reflect the high credit enhancement and continued expected paydown, defeasance and low leverage of the remaining loans. Fitch modeled losses of 4.1% of the remaining pool; expected losses on the original pool balance total 1.9%, including $18.7 million (1.7% of the original pool balance) in realized losses to date. Of the 30 loans remaining, Fitch has not designated any Fitch Loans of Concern, and no loans are in special servicing. All of the remaining loans are fully amortizing with maturity dates in year 2018 (50.1%) and 2019 (36.4%).

As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 97.2% to $30.6 million from $1.08 billion at issuance. Per the servicer reporting, seven loans (17.5% of the pool) are defeased. Interest shortfalls are currently affecting classes K through M.

Five of the top 10 loans (48.5%) are secured by single-tenant movie theaters. The largest loan (18.3%) is secured by a theater located in Denver, while the other four (30.3%) are secured by theaters in the St. Louis market. All of the loans have debt service coverage ratios at roughly 1.50x or better as of year-end 2014 and Fitch stressed loan-to-values (LTVs) of 30% or less. The leases are co-terminus with their respective maturity dates (July 2018 for the Denver theater and January 2019 for the St. Louis theaters).

RATING SENSITIVITIES

Rating Outlooks on classes I and J remain Stable due to continued stable performance of the pool. Further upgrades were not warranted at this time due to the pool's concentration and single-tenant movie theater exposure in the St. Louis market. An upgrade to class I may be warranted with additional paydown and continued stable performance. Downgrades are possible in the unlikely event expected losses increase significantly.

Fitch upgrades the following classes and revises Rating Outlooks as indicated:

--$6 million class H to 'AAAsf' from 'AAsf', Outlook to Stable from Positive;

--$8.1 million class I to 'Asf' from 'BBBsf', Outlook Stable.

Fitch affirms the following classes as indicated:

--$9.5 million class J at 'BBsf', Outlook Stable;

--$7 million class K at 'Dsf', RE 95%;

--$0 class L at 'Dsf', RE 0%.

The class A-1, A-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class M certificates. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Mar. 31, 2015);

--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions' (May 28, 2014);

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

Applicable Criteria and Related Research:

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

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

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983079

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.

Fitch Ratings
Primary Analyst:
Daniel Anderson, +1-312-606-2305
Associate Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
[email protected]

Source: Fitch Ratings

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