Fitch Affirms MLMT 1997-C2

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed four classes of Merrill Lynch Mortgage Trust's commercial mortgage pass-through certificates, series 1997-C2 (MLMT 1997-C2). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect continued pay down and stable performance since the last rating action. The pool has experienced $23.3 million (3.4% of the original pool balance) in realized losses to date. As of the January 2016 distribution date, there are six loans remaining in the pool and the aggregate principal balance has been reduced by 96.2% to $26.6 million from $686.3 million at issuance. None of the loans are in special servicing and four of the loans are fully amortizing. Interest shortfalls are currently affecting classes H through K.

The largest loan (44% of the pool) is a 321,623 square foot (sf) retail center located in Tucker, GA in the Atlanta metropolitan statistical area (MSA). The property was 72% occupied as of September 2015, which is a decline from 84% as of December 2014. Previous anchor tenants Toys R Us (formerly the largest tenant) and Bally Total Fitness vacated the property in 2014. Per the September 2015 rent roll, Petsmart is currently an anchor tenant with a lease that expires in February 2016. The servicer confirmed that PetSmart has renewed for one year to February 2017 and has been renewing their lease annually. DSCR was 1.06x as of year-end (YE) 2014 and 0.82x as of year-to-date (YTD) 3Q 2015. The loan's anticipated repayment date occurred in December 2009; the borrower remains current on monthly payments. The final maturity date is December 2027. Fitch will continue to monitor the loan's performance.

RATING SENSITIVITIES

Rating Outlooks on classes F and G are expected to remain Stable based on the expectation that credit enhancement will increase due to scheduled pay down from amortization and loan pay-offs at maturity. Despite higher credit enhancement, upgrades to classes F and G are not warranted due to binary risk from pool concentration, as the largest loan represents 44% of the overall pool and is a Fitch loan of concern. Given the concentrated nature of the pool, Fitch applied additional stresses to cash flow and cap rates to determine values.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes:

--$10.3 million class F at 'Asf', Outlook Stable.

--$6.9 million class G at 'Bsf', Outlook Stable.

--$9.3 million class H at 'Dsf', RE 75%;

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

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

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=999045

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=999045

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/20160204006152/en/

Fitch Ratings
Primary Analyst
Martin Nunnally
Associate Director
+1-212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
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

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• How To Choose The Best Pest Control Company In Reno, NV
• BayCare Marks Milestone in Expanding Access to Care in Manatee County
• Sherritt Announces Revocation of Failure to File Cease Trade Order