Twenty-two classes from two small-balance commercial mortgage-backed securities deals issued by Hometown Commercial Capital Trust have been placed on Rating Watch Negative by Fitch Ratings. The affected transactions are Hometown Commercial Capital Trust 2006-1 and Hometown Commercial Capital Trust 2007-1. The negative rating actions were attributed to "a potential for significant losses from loans currently in special servicing," of which there are six in Hometown 2006-1 and nine in Hometown 2007-1, Fitch reported. Six of the specially serviced loans have the same sponsor, which is no longer able to operate the properties and has put them up for sale as part of a larger portfolio sale, the rating agency said.
Processing Content
