Fitch Takes Various Actions on CSFB 2005-C1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded one, downgraded one and affirmed eight 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 upgrade of class E reflects increased credit enhancement from paydown since Fitch's last rating action. The pool's aggregate principal balance has been reduced by 96% to $65 million from $1.51 billion at issuance. The pool is highly concentrated with only 15 loans remaining, 12 of which are in special servicing (91%). The three non-specially serviced loans are fully amortizing and scheduled to mature in 2024 (4.8%) and 2025 (4.2%), respectively.

Fitch modeled losses of 39% of the remaining pool; expected losses on the original pool balance total 5.2% including $53 million (3.5% of the original pool balance) in realized losses to date. Interest shortfalls are currently affecting classes E through J.

The largest contributor to Fitch-modeled losses is the specially-serviced asset, The Mall at Yuba City (49% of the pool), which is a 305,887 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 real estate owned (REO) in January 2014. The mall is anchored by JCPenney (49,697 sf, maturing in 2020), Sears (73,910 sf, maturing in 2019) and Forever 21 (73,000 sf non-collateral). 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 Gottshalks in early 2009. The 73,000 sf former anchor store is now owned and occupied by Forever 21.

According to the recent appraisal, Forever 21's sales have lagged company standards. Co-tenancy clauses could be exercised by several in-line tenants should Forever 21 vacate. JCPenney recently extended their lease to March 2020. Fitch is awaiting receipt of tenant sales reports from the special servicer. As of June 2015, the property was 89% occupied.

The next largest contributor to Fitch-modeled losses is The Heritage Building(6.95%), 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 May 2015, the property was 61% occupied. The special servicer is currently renovating and repairing the elevators, which may take up to one year.

The third largest contributor to Fitch-modeled losses is a 42,238 sf in line strip mall with 20+ stores including Family Dollar (25.8%, maturing in 2016) and Rainbow USA (16.6%, maturing in 2016), located in Highland Park, MI (Detroit area). Fitch is awaiting receipt of tenant sales reports from the special servicer. The loan transferred in February 2014 due to maturity default as the borrower was unable to refinance before maturity. As of September 2014, DSCR was 0.87x and occupancy was 74%.

RATING SENSITIVITIES

Rating Outlook on class E is expected to remain Stable due to increasing credit enhancement and continued paydown. Further upgrades are not likely due to the concentrated nature of the pool with the majority in special servicing. Downgrades to the distressed classes (those rated below B) 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 upgrades the following class and revises Rating Outlooks as indicated:

--$8.5 million class E to 'Bsf' from 'CCCsf'; Outlook Stable assigned;

Fitch downgrades the following class and revises RE as indicated:

--$15.1 million class G to 'Csf' from 'CCsf'; RE 55%;

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

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

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

--$1.7 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%.

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

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

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

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989412

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989412

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/20150813005759/en/

Fitch Ratings
Primary Analyst
Darren Liss
Director
+1-212-908-0753
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, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

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