Fitch Assigns Final Ratings to CSMC Trust 2015-TOWN Commercial Mortgage P-T Certificates

Fitch Ratings has assigned the following ratings and Rating Outlooks to the CSMC Trust 2015-TOWN commercial mortgage pass-through certificates, series 2015-TOWN.

--$138,500,000a class A 'AAAsf'; Outlook Stable;
--$36,000,000a class B 'AA-sf'; Outlook Stable;
--$24,000,000a class C 'A-sf'; Outlook Stable;
--$36,500,000a class D 'BBB-sf'; Outlook Stable;
--$67,000,000a class E 'BB-sf'; Outlook Stable;
--$69,000,000a class F 'B-sf'; Outlook Stable.

The following class is not rated:
--$9,000,000a class TF.

a Privately placed pursuant to Rule 144A.

The class V Certificates will have a notional amount of $1,000 and will not have a Certificate Balance, Pass-Through Rate, rating or Rated Final Distribution Date, and will not be entitled to distributions of interest or principal.

The ratings are based on information provided by the issuer as of March 12, 2015.

The certificates the beneficial interest in a trust that holds a two-year, floating-rate, interest-only $380 million mortgage loan secured by 85 economy extended-stay hotels (10,764 keys) in 18 U.S. states. The sponsor is Starwood Capital Group. The loan was originated by Column Financial, Inc.

KEY RATING DRIVERS

Granular and Diverse Portfolio: The portfolio comprises 85 economy extended-stay hotels, operated as InTown Suites, across 18 states. No single asset accounts for more than 2.0% of the YE 2014 net cash flow.

High Trust Leverage: Fitch's stressed DSCR and loan-to-value (LTV) for the trust component of the debt are 1.07x and 101.4% based on an 18.7% discount to current net cash flow and an 11.33% refinance constant and a 12.25% cap rate, respectively.

Long Average Stay Length: The chain has a high average length of stay (82 days) with 25% of room nights driven by stays greater than one year. While the occupancy penetration exceeds 100%, the RevPAR penetration (average 90.6%) is low due to the low weekly rate. With limited services and amenities, however, the cash flow margins are high.

Older Hotel Collateral: The average age is 16.8 years and the properties have a dated appearance. However, the properties have little deferred maintenance. The borrower intends to invest $39.2 million ($3,641 per room) in capital expenditures between 2015 and 2019.

Experienced Sponsorship and Management: An affiliate of Starwood Capital Group acquired the InTown Suites chain in June 2013. Starwood is a global private investment firm that has $43 billion in assets under management.

Upward Trending Performance: Average weekly revenue per available room (RevPAR) as of the YE 2014 of $203.29 reflected an increase of 9.1% over 2013 and 13.0% above previous peak levels achieved in 2007.

RATING SENSITIVITIES

Fitch found that the property could withstand a 80.2% decline in appraised portfolio value and a 63.1% decrease in Fitch's net cash flow prior to experiencing $1 of loss to the 'AAAsf' rated class.

Fitch evaluated the sensitivity of the ratings for class A and found that a 17% decline in Fitch NCF would result in a one category downgrade, while a 46% decline would result in a downgrade to below investment grade.

The Rating Sensitivity section in the presale report includes a detailed explanation of additional stresses and sensitivities. Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (August 2014);
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (March 2015);
--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 2014).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862818
Counterparty Criteria for Structured Finance and Covered Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982268
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