Approximately $415 Million of Structured Securities Affected
New York, March 17, 2011 -- Moody's Investors Service (Moody's) affirmed the ratings of 12 classes
of Credit Suisse First Boston Mortgage Securities Corp. Commercial
Mortgage Pass-Through Certificates 2006-OMA. Moody's
rating action is as follows:
Cl. A, Affirmed at Aaa (sf); previously on Mar 9,
2011 Confirmed at Aaa (sf)
Cl. A-X, Affirmed at Aaa (sf); previously on
Mar 9, 2011 Confirmed at Aaa (sf)
Cl. B-1, Affirmed at Aa1 (sf); previously on
Mar 9, 2011 Confirmed at Aa1 (sf)
Cl. B-2, Affirmed at Aa1 (sf); previously on
Mar 9, 2011 Confirmed at Aa1 (sf)
Cl. C, Affirmed at Aa2 (sf); previously on Aug 22,
2006 Definitive Rating Assigned Aa2 (sf)
Cl. D, Affirmed at Aa3 (sf); previously on Aug 22,
2006 Definitive Rating Assigned Aa3 (sf)
Cl. E, Affirmed at A1 (sf); previously on Aug 22,
2006 Definitive Rating Assigned A1 (sf)
Cl. F, Affirmed at A2 (sf); previously on Aug 22,
2006 Definitive Rating Assigned A2 (sf)
Cl. G, Affirmed at A3 (sf); previously on Aug 22,
2006 Definitive Rating Assigned A3 (sf)
Cl. H, Affirmed at Baa1 (sf); previously on Aug 22,
2006 Definitive Rating Assigned Baa1 (sf)
Cl. J, Affirmed at Baa2 (sf); previously on Aug 22,
2006 Definitive Rating Assigned Baa2 (sf)
Cl. K, Affirmed at Baa3 (sf); previously on Aug 22,
2006 Definitive Rating Assigned Baa3 (sf)
RATINGS RATIONALE
The affirmations are due to key parameters, including Moody's loan
to value (LTV) ratio and Moody's stressed debt service coverage ratio
(DSCR), remaining within acceptable ranges. The single loan
in the transaction is collateralized by a high quality New York City office
building that benefits from an investment grade tenancy on a long term
lease.
Moody's analysis reflects a forward-looking view of the likely
range of collateral performance over the medium term. From time
to time, Moody's may, if warranted change these expectations.
Performance that falls outside an acceptable range of the key parameters
may indicate that the collateral's credit quality is stronger or weaker
than Moody's had anticipated during the previous review. Even so,
deviation from the expected range will not necessarily result in a rating
action. There may be mitigating or offsetting factors to an improvement
or decline in collateral performance, such as increased subordination
levels due to amortization and loan payoffs or a decline in subordination
due to realized losses.
Primary sources of assumption uncertainty are the current sluggish macroeconomic
environment and varying performance in the commercial real estate property
markets. However, Moody's expects to see increasing or stabilizing
property values, higher transaction volumes, a slowing in
the pace of loan delinquencies and greater liquidity for commercial real
estate in 2011 The hotel and multifamily sectors are continuing to show
signs of recovery, while recovery in the office and retail sectors
will be tied to recovery of the broader economy. The availability
of debt capital continues to improve with terms returning toward market
norms. Moody's central global macroeconomic scenario reflects an
overall sluggish recovery through 2012, amidst ongoing individual,
corporate and governmental deleveraging, persistent unemployment,
and government budget considerations.
The principal methodology used in rating Credit Suisse First Boston,
Series 2006-OMA was "Moody's Approach to Rating Large Loan/Single
Borrower Transactions" published on July 7, 2000. Other methodologies
and factors that may have been considered in the process of rating this
issuer can also be found on Moody's website.
Moody's review incorporated the use of the excel-based Large Loan
Model v 8.0. The large loan model derives credit enhancement
levels based on an aggregation of adjusted loan level proceeds derived
from Moody's loan level LTV ratios. Major adjustments to determining
proceeds include leverage, loan structure, property type,
and sponsorship. These aggregated proceeds are then further adjusted
for any pooling benefits associated with loan level diversity, other
concentrations and correlations.
Moody's ratings are determined by a committee process that considers both
quantitative and qualitative factors. Therefore, the rating
outcome may differ from the model output.
The rating action is a result of Moody's on-going surveillance
of commercial mortgage backed securities (CMBS) transactions. Moody's
monitors transactions on a monthly basis through two sets of quantitative
tools -- MOST® (Moody's Surveillance Trends) and CMM
(Commercial Mortgage Metrics) on Trepp -- and on a periodic
basis through a comprehensive review. Moody's prior full review
is summarized in a press release dated September 22, 2010.
Please see the ratings tab on the issuer / entity page on moodys.com
for the last rating action and the ratings history.
DEAL PERFORMANCE
As of the February 17, 2011 distribution date, the transaction's
aggregate certificate balance of $415 million remains unchanged
since securitization. The Certificates are collateralized by a
junior first mortgage loan component of $50.0 million and
a senior mezzanine debt component of $365.2 million;
both are subordinate to a senior first mortgage loan component not included
in the Trust. The senior loan component is approximately $105.3
million and has a self-liquidating amortization schedule that matures
in June 2016. The maturity date of the subordinate loan and the
senior mezzanine debt is May 2020. The junior loan is interest-only
(IO) throughout the loan term. The senior mezzanine debt begins
scheduled amortization when the senior first mortgage loan balance is
paid off in June 2016. There is an additional subordinated mezzanine
debt component that is not included in the Trust with a balance of approximately
$117.7 million. This subordinated mezzanine debt
is interest only throughout the loan term. In the event of a Mortgage
Recording Triggering Event, the mezzanine debt can be converted
into a mortgage loan.
The mortgage loan and mezzanine debt are secured by interests in One Madison
Avenue, a Class A office building located in the East Midtown South
submarket of Manhattan, in New York City. The collateral
consists of the 13-story, 1.17 million square foot
building which was constructed between 1954 and 1960. Credit Suisse
(USA) Inc. is the main tenant leasing approximately 95%
of the net rentable area pursuant to a master lease with an initial term
that expires on December 31, 2020. The tenant has three,
5-year renewal options. As of December 2010, the property
was 99.8% leased which is a similar level as at securitization.
New York
Annelise Osborne
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Michael M. Gerdes
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Affirms 12 Classes of CSFB 2006-OMA