Fitch Affirms BBCCRE Trust 2015-GTP

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed all classes of BBCCRE Trust 2015-GTP commercial mortgage pass-through certificates, series 2015-GTP. 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 performance of the pool, which has exhibited no material change since issuance. As of year-end (YE) 2015, the portfolio was 100% occupied and the servicer reported a net operating income (NOI) debt service coverage ratio (DSCR) of 2.11x.

The transaction represents the beneficial interest in a trust that holds a 10-year, fixed-rate, interest-only $660 million mortgage loan secured by the fee and leasehold interests in a portfolio of 39 office and two industrial properties, totalling 2.6 million square feet (sf). The portfolio is spread across 19 different states, with the highest concentrations in Florida (25.2% of the current balance) and Texas (15.7%). The portfolio is fully occupied by 16 different U.S. Federal Government ('AAA'/Stable Outlook) agencies via General Services Administration (GSA) leases. The largest three agency tenants are the Federal Bureau of Investigation, which is 22.5% of net rentable area (NRA), United States Citizenship and Immigration Services (18% of NRA), and the Drug Enforcement Agency (11.7% of NRA).

Over the term of the loan, the portfolio has significant initial (hard) lease rollover of 95.4% (by sf) prior to loan maturity in August 2025. The rollover is staggered throughout the loan term with no more than 22.9% of total rent across nine leases expiring in any year. The properties were all either built-to-suit or retrofit-to-suit to fit GSA requirements. Due to the mission critical nature of many government facilities, locational restrictions, and various procurement factors, renewal probability in the government sector has historically been high.

The Fitch maturity stressed loan-to-value is approximately 97% based on capitalization of the Fitch-adjusted net cash flow at a rate of 8%.

RATING SENSITIVITIES

The Rating Outlooks on all classes remain Stable. Fitch does not foresee positive or negative migration until a material economic or asset level event changes the transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes:

--$330 million class A at 'AAAsf'; Outlook Stable;

--$330 million* class X-A at 'AAAsf'; Outlook Stable;

--$62 million class B notes at 'AA-sf'; Outlook Stable;

--$41 million class C notes at 'A-sf'; Outlook Stable;

--$103 million* class X-B at 'A-sf'; Outlook Stable.

*Notional amount and interest-only

Fitch does not rate the class D, E, or F certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 18 Jul 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884963

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

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=882401

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130

Related Research

BBCCRE Trust 2015-GTP -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869231

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1009991

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1009991

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/20160804006423/en/

Fitch Ratings
Primary Analyst
Zachary Johnson
Associate Director
+1-646-582-4815
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: [email protected]
Hannah James, New York, + 1 646-582-4947
Email: [email protected]

Source: Fitch Ratings

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