Fitch Affirms CSAIL 2015-C3

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 16 classes of Credit Suisse USA (CSAIL) Commercial Mortgage Trust Pass-Through Certificates series 2015-C3. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of CSAIL 2015-C3 are based on the stable performance of the underlying collateral and no material changes to the pools metrics since issuance. As of the July 2016 distribution date, the pool's aggregate principal balance has been reduced by 0.51% to $1.413 billion from $1.420 billion at issuance. The pool has experienced no realized losses to date, and there are currently no delinquent or specially serviced loans; and no loans are defeased. A minor interest shortfall of $443 is currently affecting class NR. The Fitch debt service coverage ratio (DSCR) and loan to value (LTV) for the pool at issuance were 1.22x and 107.4%, respectively.

Investment-Grade Credit Opinion Loan: The largest loan in the pool, Charles River Plaza North (9%), received a credit opinion of 'BBB-sf' on a stand-alone basis at issuance. The loan is secured by a 354,594 square foot medical office building 100% leased to Massachusetts General Hospital. The lease is guaranteed by Massachusetts General Hospital's parent, Partners Healthcare, which is currently rated 'AA' by Fitch.

High Hotel Exposure: Approximately 23.7% of the pool balance, including three of the top 10 loans (14.5%), consists of hotel properties. The largest hotel backed loan is the Starwood Capital Extended Stay Portfolio (7.4%), the second largest loan in the pool, secured by 50 Extended Stay Hotel properties located across 12 states with a total of 6,106 rooms. The largest single state exposure for the portfolio is Texas with 10 hotels and 1,380 rooms. At issuance the Fitch DSCR and LTV for the loan was 103.4% and 1.48x, respectively.

Limited Amortization: Five of the largest 10 loans, representing 22.3% of the pool, are full-term interest-only loans. In total there are 11 full-term interest-only loans representing 25.2% of the pool. Additionally, there are 42 loans representing 42.6% of the pool that are partial-interest-only.

Pari Passu Debt and Additional Debt: Ten loans, representing 44% of the pool are pari passu: Charles River Plaza North, Starwood Capital Extended Stay Portfolio, The Mall of New Hampshire, Westfield Wheaton, Arizona Grand Resort & Spa, Soho-Tribeca Grand Hotel Portfolio, Westfield Trumbull, WPC Department Store Portfolio, Sterling & Milagro Apartments, and Cape May Hotels. Four loans in the pool (21.2%), Charles River Plaza North, Starwood Capital Extended Stay Portfolio, Arizona Grand Resort & Spa, and Sterling & Milagro Apartments have mezzanine debt held outside the trust.

Collateral Quality: Four properties (13.6%), three of which serve as collateral for top 10 loans (Charles River Plaza North, Soho Grand Hotel, and Tribeca Grand Hotel), were all assigned property quality grades of 'A-' by Fitch at issuance. The fourth property to receive a property quality grade of 'A-' was Congress Hall. The majority of the pool (50.7%) was assigned a property quality grade in the 'B' range.

RATING SENSITIVITIES

The Rating Outlooks remain Stable for all classes due to stable performance of the pool since issuance. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.

Additional information on rating sensitivity is available in the report 'CSAIL 2015-C3 (US CMBS)' (July 29, 2015), available at www.fitchratings.com.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following ratings:

--$53,246,242 class A-1 at 'AAAsf'; Outlook Stable;

--$148,324,000 class A-2 at 'AAAsf'; Outlook Stable;

--$200,000,000 class A-3 at 'AAAsf'; Outlook Stable;

--$502,390,000 class A-4 at 'AAAsf'; Outlook Stable;

--$82,627,000 class A-SB at 'AAAsf'; Outlook Stable;

--$86,962,000 class A-S at 'AAAsf'; Outlook Stable;

--$1,080,812,000(b) class X-A at 'AAAsf'; Outlook Stable;

--$86,961,000 class B at 'AA-sf'; Outlook Stable;

--$86,961,000(b) class X-B at 'AA-sf'; Outlook Stable;

--$63,891,000 class C at 'A-sf'; Outlook Stable;

--$72,764,000 class D at 'BBB-sf'; Outlook Stable;

--$72,764,000(a)(b) class X-D at 'BBB-sf'; Outlook Stable;

--$35,495,000(a) class E at 'BB-sf'; Outlook Stable;

--$35,495,000(a)(b) class X-E at 'BB-sf'; Outlook Stable;

--$14,197,000(a) class F at 'B-sf'; Outlook Stable;

--$14,197,000(a)(b) class X-F at 'B-sf'; Outlook Stable.

(a) Privately placed and pursuant to Rule 144A.

(b) Notional amount and interest-only.

Fitch does not rate the $65,666,014 class NR and class X-NR 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 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

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

Related Research

CSAIL 2015-C3 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869204

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1009993

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1009993

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/20160804006468/en/

Fitch Ratings
Primary Analyst
Benson Thomas, +1-212-908-0645
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations, New York
Elizabeth Fogerty, +1-212-908-0526
[email protected]
Hannah James, +1-646-582-4947
[email protected]

Source: Fitch Ratings

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