Fitch Explains Analysis of CMBS Modifications

With more borrowers seeking to modify their commercial mortgage backed securities loans in increasingly complicated ways, Fitch Ratings has published a new report explaining its rationale for evaluating these requests.The report is designed to educate borrowers and CMBS servicers about the evaluation process and document needs when Fitch is asked for a rating confirmation. In issuing a confirmation, Fitch confirms that a modification to an existing loan will not affect the ratings of the transaction. The paper covers request issues such as assumptions, defeasance, management changes, and more complicated issues such as tenants-in-common structures.