Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
29 Sep 2010
Approximately $411.0 Million of Structured Securities Affected
New York, September 29, 2010 -- Moody's Investors Service (Moody's) affirmed the ratings of
six classes of TrizecHahn Office Properties Trust, Commercial Mortgage
Pass-Through Certificates, Series 2001-TZH.
Moody's rating action is as follows:
Cl. A-2, Affirmed at Aaa (sf); previously on
May 17, 2001 Definitive Rating Assigned Aaa (sf)
Cl. A-4, Affirmed at Aaa (sf); previously on
May 17, 2001 Definitive Rating Assigned Aaa (sf)
Cl. B-4, Affirmed at Aaa (sf); previously on
Oct 24, 2006 Upgraded to Aaa (sf)
Cl. C-4, Affirmed at Aa2 (sf); previously on
Aug 13, 2007 Upgraded to Aa2 (sf)
Cl. D-4, Affirmed at A2 (sf); previously on Aug
13, 2007 Upgraded to A2 (sf)
Cl. E-4, Affirmed at Baa1 (sf); previously on
Aug 13, 2007 Upgraded to Baa1 (sf)
The affirmations were due to key rating parameters including Moody's
loan to value (LTV) ratio and debt service coverage (DSC) ratio remaining
within an acceptable range. This determination was based on Moody's
valuation of the three office building properties that serve as collateral
for the non-defeased portion of the trust. Moody's
analysis stressed the actual 2009 collateral cash flow by approximately
34% to capture the potential impact of future occupancy volatility
resulting from certain tenant relocations and expected downsizings.
This net cash flow reduction resulted in a Moody's LTV ratio of
62%, based on a valuation of approximately $101 per
square foot ("PSF") of net rentable area ("NRA").
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 current 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 stressed macroeconomic
environment and continuing weakness in the commercial real estate and
lending markets. Moody's currently views the commercial real estate
market as stressed with further performance declines expected in the industrial,
office, and retail sectors. Hotel performance has begun to
rebound, albeit off a very weak base. Multifamily has also
begun to rebound reflecting an improved supply / demand relationship.
The availability of debt capital is improving with terms returning towards
market norms. Job growth and housing price stability will be necessary
precursors to commercial real estate recovery. Overall, Moody's
central global scenario remains "hook-shaped" for 2010 and 2011;
we expect overall a sluggish recovery in most of the world's largest economies,
returning to trend growth rate with elevated fiscal deficits and persistent
The principal methodology used in rating and monitoring this transaction
was Moody's "CMBS: Moody's Approach to Rating Large Loan/Single
Borrower Transactions", rating methodology published in July 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. In
addition, Moody's publishes a weekly summary of structured finance
credit, ratings and methodologies, available to all registered
users of our website, at www.moodys.com/SFQuickCheck.
Moody's review incorporated the use of the excel-based CMBS Large
Loan Model v 8.0 which is used for both large loan and single borrower
transactions. 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. The model also incorporates a
supplementary tool to allow for the testing of the credit support at various
rating levels. The scenario or "blow-up" analysis tests
the credit support for a rating assuming that loans in the pool default
with an average loss severity that is commensurate with the rating level
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 March 11, 2009. The
previous review was part of Moody's first quarter 2009 ratings sweep and
incorporated assumptions for capitalization rates and stressed cash flows
that were outlined in "Rating Methodology Update: US CMBS Conduit
and Fusion Review Prompted by Declining Property Values and Rising Delinquencies"
dated February 5, 2009. Please see the ratings tab on the
issuer / entity page on moodys.com for the last rating action and
the ratings history.
As of the September 15, 2010 Payment Date, the transaction's
certificate balance has decreased by 71% to $411.0
million from $1,440 million at securitization due to the
payoff at maturity of two floating rate loans that matured in April 2006
and March 2006, respectively and one fixed-rate loan that
matured in March 2008. Currently the mortgage pool consists of
two cross-collateralized and cross-defaulted loans secured
by three properties and $113.8 in defeasance collateral
(28% of the current outstanding bond balance). The two loans
consist of a ten-year amortizing fixed rate loan evidenced by a
single promissory note (the Class A-2 Secured Note) and a ten-year,
non-amortizing fixed rate loan evidenced by five promissory notes
(the Class A-4 Secured Note, the Class B-4 Secured
Note, the Class C-4 Secured Note , the Class D-4
Secured Note and the Class E-4 Secured Note). Each of the
six secured notes matures on May 10, 2011. Class A-2
is fully defeased and Class A-4 is partially defeased. The
borrowers are controlled by affiliates of Brookfield Office Properties
and The Blackstone Group. Since securitization, twenty-five
properties have been released from the loan collateral. None of
the loans are on the master servicer's watchlist. As part
of our ongoing monitoring of a transaction, Moody's reviews the
watchlist to assess which loans have material issues that could impact
performance. Watchlisted loans are loans which meet certain portfolio
review guidelines established as part of the CRE Finance Council (CREFC)
monthly reporting package. To date the pool has not experienced
Moody's was provided with full year 2009 operating results,
and rent rolls dated June 30, 2010 for each of the three properties
in the pool. Moody's weighted average LTV ratio is 62%,
compared to 65% at last review. Moody's stressed DSC
ratio is 1.82X, compared to 1.45X at last review.
Moody's stressed DSC ratio is based on Moody's net cash flow
("NCF") and a 9.25% stressed rate applied to
the loan balance.
Moody's uses a variation of Herf to measure diversity of loan size,
where a higher number represents greater diversity. Loan concentration
has an important bearing on potential rating volatility, including
risk of multiple notch downgrades under adverse circumstances.
The credit neutral Herf score is 40. Large loan transactions have
a Herf of less than 20. This pool has a Herf of 1, the same
as at Moody's prior review.
Allen Center is a three-building, Class A office complex
located in the central business district ("CBD") of Houston,
Texas. The three building complex consists of Allen Center I,
II and III, which have 34, 36 and 50 stories, respectively
and a total of approximately 3.2 million square feet ("sf")
of NRA, including approximately 75,000 square feet of retail
and storage space. The property, which is located on the
downtown tunnel system which connects most of downtown Houston,
has parking garage facilities with a 5,813 car capacity.
As of June 2010, occupancies for the three Allen Center buildings
ranged from 90% at Allen Center III to 97% at both Allen
Center I and II. The weighted average occupancy for the Allen Center
complex was 94%. The three largest tenants at Allen Center
I lease approximately 68% of total building NRA. The largest,
Hess Corporation (475,102 sf -- 48%; lease expiration
on August 31, 2011) is expected to vacate all of its space upon
lease expiration and move into a new 29-story building currently
under construction in downtown Houston where it has signed a long-term
lease. The second and third largest tenants in Allen Center I are
Knight, Inc. (219,694 sf -- 14%; lease
expiration in December 2010) and Macquarie Holdings (USA), Inc.
-- 6% (56,304 sf; lease expiration in September
2017). Moody's accounted for Hess' impending departure
in its analysis.
The largest tenant in both Allen Center II and Allen Center III is Devon
Energy. Devon, who leases approximately 642,118 sf
(65% of NRA) in Allen Center II and 218,799 sf (18%)
in Allen Center III, has lease expirations in January 2020.
Devon is currently offering a substantial portion of its space for sublease.
Continental Center I, a 1.1 million sf Class A office building
located in the Houston CBD, is part of, and connected via
a pedestrian skywalk to, the Cullen Center office/hotel and retail
complex. As of June 2010, Continental Center I was 93%
leased. Corporate downsizing and headquarter relocation is expected
to affect Continental Center I, as well as Allen Center.
Chevron U.S.A. Inc., a major subsidiary
of Chevron Corporation, and Continental Airlines, Inc.
lease approximately 460,211 sf (42% of NRA) and 431,015
sf (39%), respectively in Continental Center I. Chevron's
lease expires in April 2012 and Continental's lease expires in December
2014. Chevron has announced plans to downsize and it is expected
that it will vacate a significant portion of its office space in Continental
Center I at lease expiration. Continental Airlines, which
is merging with United Airlines, announced that it is moving its
world headquarters from Houston to Chicago. Continental,
which also leases approximately 200,000 square feet of back office
space in Continental Center II, an adjacent Class B office building,
is expected to vacate the majority of its space in these two buildings
in 2012. Also weighing on the Houston office market is uncertainly
regarding BP p.l.c. which has suffered negative publicity
after the Gulf Oil spill. Houston is BP's largest United
States employment center. CB Richard Ellis reports that as of the
2nd Quarter 2010 the downtown Houston Class A office vacancy rate was
9.4%, an increase of 110 basis points ("bps")
over year end 2009. The vacancy rate is projected to increase through
2011, accompanied by falling market rents after which vacancy rates
are projected to decrease with rising rents. Moody's analysis
has taken into account current and projected market conditions and expected
increases in vacancy due to Chevron's downsizing and Continental
Airlines' headquarter relocation.
Landmark Square is a 24-story Class A office building containing
443,818 square feet NRA located in downtown Long Beach, California.
As of June 2010 the property was 90% leased to approximately 45
tenants. The three largest tenants are Wells Fargo Bank,
N.A. (71.128 sf -- 16% of NRA; lease
expiration in February 2021), Thums Long Beach Company, an
oil and gas producer (49,866 sf -- 11%; lease expiration
in December 2011) and Perkowitz & Ruth, an architectural firm
(38,452 sf -- 9%; lease expiration in October 2016).
CB Richard Ellis reports that as of the 2nd Quarter 2010 the downtown
Long Beach Class A office market had a vacancy rate of 14.7%.
Market vacancy is projected to peak in 2011 at 15% with gradual
declines thereafter. Market rent is projected to increase in each
of the next six years, after an 11.6% decline in 2009.
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
Andrea M. Daniels
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
Moody's Investors Service
Moody's Affirms Six CMBS Classes of TrizecHahn Office Properties Trust, 2001-TZH
250 Greenwich Street
New York, NY 10007
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.