Fitch Upgrades NASC 1998-D6

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has upgraded one class and affirmed two classes of Nomura Asset Securities Corp.'s (NASC) commercial mortgage pass-through certificates, series 1998-D6. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade is due to increased credit enhancement, defeasance, and expected full repayment of the bond from amortization in the next few remittance periods. The pool has 22 loans remaining, 13 of which (68.5% of the pool) are defeased.

As of the November 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.2% to $69 million from $3.72 billion at issuance. The pool has incurred $92.7 million (2.5% of the original pool balance) in realized losses to date. Fitch has designated two loans (2.5%) as Fitch Loans of Concern; there are no specially serviced loans. Interest shortfalls are currently affecting classes B-4 through B-5.

The remaining nine non-defeased loans do not reflect any historical delinquency, seven of which (28.6% of the pool) are Credit Tenant Lease (CTL) structures with full amortization occurring on either August 2017 or February 2020. 21.1% of the total loans in the pool are exposed to Carmax and are structured as CTL loans. The remaining CTL loans were formerly occupied by Value City but are now leased to various tenants.

RATING SENSITIVITIES

The Rating Outlook of class B-3 remains Stable given the stable performance of the pool and likelihood of imminent repayment.

DUE DILIGENCE USAGE

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

Fitch upgrades the following class as indicated:

Nomura Asset Securities Corp. 1998-D6

--$2.6 million class B-3 to 'AAAsf' from 'Asf'; Outlook Stable.

Fitch affirms the following classes as indicated:

--$1.3 million class B-5 at 'Dsf'; RE 0%;

--$0 class B-6 at 'Dsf'; RE 0%.

The class A-1A, A-1B, A-1C, A-CS1, A-2, A-3, A-4, A-5, and B-2 certificates have paid in full. Fitch does not rate the class B-1, B-4, B-7 and B-7H certificates. Fitch previously withdrew the rating on the interest-only class PS-1 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=996874

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996874

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/20151216006329/en/

Fitch Ratings
Primary Analyst
David Ro
Director
+1-312-368-3132
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson
Senior Director
+1-312-606-2341
or
Media Relations
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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