(The following statement was released by the rating agency)
May 30 - Fitch Ratings has affirmed Orso Funding CMBS 5’s class C to F trust beneficiary interests (TBIs) due February 2013 and removed the Rating Watch Negative (RWN) from the class C TBIs. The transaction is a Japanese multi-borrower type CMBS securitisation. The rating actions are as follows:
JPY0.9bn* Class C TBIs affirmed at ‘Asf’; off RWN; Outlook Stable
JPY2.9bn* Class D TBIs affirmed at ‘Bsf’; Outlook Stable
JPY1.5bn* Class E TBIs affirmed at ‘Dsf’; Recovery Estimate 20%
JPY0* Class F TBIs affirmed at ‘Dsf’
*as of 29 May 2012
The affirmation of the class C and D TBIs and the removal of RWN from class C TBIs reflect Fitch’s view that the remaining seven properties backing the remaining one defaulted loan will be sold prior to the legal final maturity date. Fitch believes these properties to be marketable and that the total sales proceeds will be sufficient to repay these two classes in full. The workout activity initiated by the servicer has progressed in accordance with their business plan and Fitch expects several properties will be sold over the coming weeks. As a result, Fitch expects the class C TBIs to be paid in full on the July 2012 payment date.
At closing the transaction was backed by seven loans secured by 43 properties. The TBIs are now backed by one defaulted loan secured by seven office properties, all of which are located in Tokyo.