Fitch Ratings has affirmed 13 classes of
Fitch has revised the Rating Outlooks for class F-RR in
RATING ACTIONS
Entity / Debt
Rating
Prior
A-2 90276FAT1
LT
PIFsf
Paid In Full
AAAsf
A-3 90276FAV6
LT
AAAsf
Affirmed
AAAsf
A-4 90276FAW4
LT
AAAsf
Affirmed
AAAsf
A-S 90276FAZ7
LT
AAAsf
Affirmed
AAAsf
A-SB 90276FAU8
LT
AAAsf
Affirmed
AAAsf
B 90276FBA1
LT
AAsf
Affirmed
AAsf
C 90276FBB9
LT
A-sf
Affirmed
A-sf
D 90276FAC8
LT
BBB-sf
Affirmed
BBB-sf
D-RR 90276FAE4
LT
BBB-sf
Affirmed
BBB-sf
Page
of 3
VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Performance and 'B' Loss Expectations: Deal-level 'Bsf' rating case losses are 5.1% for
The affirmations reflect generally stable pool performance and overall loss expectations since Fitch's prior rating action. The affirmations for
The Rating Outlook revision to Negative from Stable for class F-RR in
FLOCs; Largest Loss Contributors: The largest contributor to overall pool loss expectations and the largest increase in loss since the prior rating action in
The largest increase in loss since the prior rating action in
In 2022,
Upcoming rollover includes 13.8% of the NRA (25.9% rent) in 2024, 29.6% (50.1%) in 2025 and 10% (15.1%) in 2026. The servicer-reported NOI DSCR was 1.98x at YE 2023 compared 2.11x the prior year. Fitch's 'Bsf' rating case loss of 8.8% (prior to concentration add-ons) reflects a 25% stress to the YE 2023 NOI for rollover concerns and a 9.5% cap rate.
The largest FLOC in the
The largest FLOC and largest contributor to overall pool loss expectations in the
Property-level NOI has declined since issuance, with the most recent full-year reported YE 2022 NOI remaining approximately 29% below the issuer's underwritten NOI and 12% below YE 2020 NOI. The NOI declines are mainly attributed to the lower revenue since the pandemic, where YE 2022 revenue is 20% below YE 2019. As of
Collateral occupancy declined to 90.5% as of
Increased Credit Enhancement (CE): As of the
Loan maturities are concentrated in 2028, with 53 loans comprising 99.7% of the pool in
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Downgrades to 'AAAsf' rated classes are not expected due to the position in the capital structure and expected continued amortization and loan repayments, but may occur if deal-level losses increase significantly and/or interest shortfalls occur. Downgrades to junior 'AAAsf' rated classes are possible with continued performance deterioration of the specially serviced loans or significant increases in exposure, limited to no improvement in class CE, or if interest shortfalls occur.
Downgrades to classes rated in the 'AAsf' and 'Asf' categories could occur if deal-level losses increase significantly from outsized losses on larger FLOCs and/or more loans than expected experience performance deterioration and/or default at or prior to maturity.
Downgrades to classes rated in the 'BBBsf' category are possible with higher than expected losses from continued underperformance of the FLOCs, in particular office loans with deteriorating performance, and/or with greater certainty of losses on the specially serviced loans and/or FLOCs. Elevated risk office loans include
Downgrades to classes rated in the 'BBsf' and 'Bsf' categories would occur with greater certainty of losses on the specially serviced loans or FLOCs, should additional loans transfer to special servicing or default and as losses are realized or become more certain.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Upgrades to classes rated in the 'AAsf' and 'Asf' category may be possible with significantly increased CE, coupled with stable-to-improved pool-level loss expectations and improved performance on the FLOCs, including
Upgrades to classes rated in the 'BBBsf' category would be limited based on sensitivity to concentrations or the potential for future concentration. Classes would not be upgraded above 'AA+sf' if there is likelihood for interest shortfalls.
Upgrades to 'BBsf' and 'Bsf' category rated classes are not likely until the later years in a transaction and only if the performance of the remaining pool is stable, recoveries on the FLOCs and specially serviced loans are better than expected and there is sufficient CE to the classes.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Additional information is available on www.fitchratings.com
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