Fitch Affirms CSFB 2005-C1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 10 classes of Credit Suisse First Boston Mortgage Securities Corp. series 2005-C1 (CSFB 2005-C1), commercial mortgage pass-through securities. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The master servicer has been withholding all interest and principal payments until approximately $851,000 of outstanding servicing advances are recovered. In the interim, no certificates will receive interest or principal.

Despite missed interest and principal payments to the certificate holders, the affirmation of class E reflects Fitch's expectation of full recovery of interest and principal based on the recoverability prospects of the remaining collateral pool relative to the small remaining class size.

The affirmation of the remaining distressed classes (those rated below 'Bsf') is based upon pool concentration and adverse selection. The pool is highly concentrated with only 13 loans remaining, 10 of which are in special servicing (90% of the pool). Six of the assets in special servicing are real estate owned (REO; 77.3%), two (8.2%) are classified as in foreclosure and two (4.9%) are non-performing matured balloons. The three non-specially serviced loans are fully amortizing and scheduled to mature in 2024 (5.1%) and 2025 (4.5%), respectively.

Fitch modeled losses of 54.7% of the remaining pool; expected losses on the original pool balance total 5.6%, including $53 million (3.5% of the original pool balance) in realized losses to date. As of the July 2016 distribution report, the pool's aggregate principal balance has been reduced by 96% to $57 million from $1.51 billion at issuance. Due to the master servicer recovering outstanding advances, all classes are currently experiencing interest shortfalls with cumulative shortfalls totaling $9 million.

The largest contributor to Fitch-modeled losses is The Mall at Yuba City asset (55% of the pool), which is a 408,021 square foot (sf) enclosed regional mall located in Yuba City, CA. The loan transferred to the special servicer in March 2011 for imminent default and became REO in January 2014. The mall is anchored by JCPenney (49,697 sf, maturing in 2020) and Sears (73,910 sf, maturing in 2019). The mall is the only regional mall in the trade area; however, cash flow has been below break-even after the bankruptcy and subsequent departure of former department store Gottschalks in early 2009. As of March 2016, the property was 89% occupied. The special servicer is currently working to stabilize the property.

The next largest contributor to Fitch-modeled losses is The Heritage Building asset (8.02%), a 94,945 sf stand-alone office property built in 1906 located in downtown Jackson, MS. The property became REO in May 2014. As of March 2016, the property was 53% occupied. The special servicer is completing required elevator work prior to marketing the asset for sale by the end of 2016.

The third largest contributor to Fitch-modeled losses is the 2230 Point Boulevard asset, a 36,472 sf single-story masonry office building located in Elgin, IL. The loan transferred to the special servicer in December 2014 for maturity default and became REO in March 2016. The special servicer is still in the process of assessing a resolution strategy. As of December 2015, the property was 10% occupied.

RATING SENSITIVITIES

The Stable Outlook on class E reflects high credit enhancement and the expectation of full repayment of the small remaining class balance once outstanding servicing advances are recovered. An upgrade of class E is not likely due to the concentrated nature of the pool with the majority in special servicing. The remaining classes are distressed and downgrades are likely as losses are incurred.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following ratings and revises RE as indicated:

--$634,093 class E at 'Bsf'; Outlook Stable;

--$20.8 million class F at 'CCCsf'; RE 100%;

--$15.1 million class G at 'Csf'; RE 25%;

--$18.9 million class H at 'Csf'; RE 0%;

--$1.9 million 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 class A-1, A-2, A-AB, A-3, A-4, A-J, B, C and D certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on the interest-only class A-X and A-SP 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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1009646

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1009646

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/20160728006339/en/

Fitch Ratings
Primary Analyst
Catherine Barbieri
Associate Director
+1-212-908-0638
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart
Senior Director
+1-212-908-0606
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

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