OREANDA-NEWS. Fitch Ratings has affirmed six classes of Citigroup Commercial Mortgage Trust 2015-SHP2 commercial mortgage pass-through certificates series 2015-SHP2. The certificates represent the beneficial interest in a trust that holds a single two-year floating-rate interest-only first-lien mortgage loan, subject to three one-year extension options, in the amount of $215 million secured by 22 hotel properties located in 10 states across 15 markets representing 10 different franchise brands. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations reflect the stable performance of the collateral since issuance. The portfolio is primarily secured by select and limited service hotels close to demand generators that mitigate the volatile operating nature of the industry. Fitch will continue to monitor the portfolio's performance to ensure that revenues and incomes considered at the time of Fitch's initial ratings are sustainable over the loan term.

Proceeds of the loan were used to acquire the properties for $318.1 million, establish a property improvement plan (PIP) reserve of approximately $30.9 million, establish a ground lease acquisition reserve of $2.6 million and pay closing costs of approximately $10.2 million. At issuance, the sponsor planned to invest ($11,546 per key) in the properties as part of required PIPs over the initial loan term. This capital investment in the individual properties should maintain the superior competitive position of the assets in their respective submarkets.

The portfolio's performance is consistent with Fitch's expectation since issuance. Occupancy, average daily room rate (ADR), and revenue per average room (RevPAR) as of full-year (FY) 2015 were reported at 73.9%, $123.10, and $91.02, respectively, compared with the trailing 12 months (TTM) March 2015 74.7% occupancy, $113.43 ADR, and $87.99 RevPAR. This continued a trend of strong performance growth as the FY 2014 occupancy, ADR, and RevPAR were 76.9%, $111.86, and $86.06, respectively. The Fitch net cash flow (NCF) based on FY 2015 was approximately 3.2% lower than Fitch's issuance NCF, primarily due to more conservative assumptions related to gross room revenues in accordance with Fitch's economic view of the hotel industry. Fitch's stressed DSCR and LTV through class D, the lowest tranche rated by Fitch in this transaction, at issuance was 1.68x and 65%, respectively. The Fitch stressed FY 2015 DSCR and LTV through class D were 1.51x and 71.3%, respectively.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'Citigroup Commercial Mortgage Trust 2015-SHP2 (US CMBS)' (July 17, 2015), available at www. fitchratings. com.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

-- 'Citigroup Commercial Mortgage Trust 2015-SHP2 -- Appendix' (July 17, 2015).

Fitch affirms the following classes as indicated:

--$89,545,000 class A at 'AAAsf'; Outlook Stable;

--$46,545,000 * class X-CP at 'AAAsf'; Outlook Stable;

--$46,545,000 * class X-NCP at 'AAAsf'; Outlook Stable;

--$18,455,000 class B, at 'AA-sf'; Outlook Stable;

--$13,000,000 class C at 'A-sf'; Outlook Stable;

--$21,000,000 class D at 'BBB-sf'; Outlook Stable

* Notional amount and interest-only.

Fitch does not rate the $38,000,000 class E certificates or the $35,000,000 class F certificates.