OREANDA-NEWS. Fitch Ratings has affirmed two classes of Chase Commercial Mortgage Securities Corp.'s, commercial mortgage pass-through certificates, series 1998-2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The affirmations are due to sufficient credit enhancement to the remaining Fitch rated classes and minimal Fitch expected losses across the pool. The pool has experienced \$10.4 million (0.8% of the original pool balance) in realized losses to date. Fitch has designated three of the remaining 11 loans (54.8% of the pool) as Fitch Loans of Concern; however, at this time there are no delinquent or specially serviced loans.

As of the January 2015 distribution date, the pool's aggregate principal balance has been reduced by 97.9% to \$26.2 million from \$1.27 billion at issuance. Per the servicer reporting, one loan (8.9% of the pool) is defeased. Interest shortfalls are currently affecting class J.

The three Fitch Loans of Concern consist of three restaurant portfolios. Two of the portfolios have six assets in six markets and the third has four assets in four markets; all of the properties are stand-alone restaurants located in diverse markets throughout the South and Midwestern United States. Collectively, the restaurant brands include Chili's, Macaroni Grill, and On the Border. The loans are current to date; however, the single-tenant exposure of the individual assets within the portfolios presents binary risk that could impact the loans should any of the assets not perform. In addition, the balloon loan maturity dates are coterminous with the respective tenant lease expirations and the most recent reported financials for each of the portfolios are as of year-end (YE) 2012.

RATING SENSITIVITY
Rating Outlooks on classes H and I remain Stable due to increasing credit enhancement and continued paydown. Although credit enhancement is high relative to the ratings, the pool is concentrated, with only 11 loans remaining; the majority of the non-defeased collateral consists of retail/restaurant assets (70% of the pool).

Fitch affirms the following classes:

--\$4.9 million class H at 'Asf', Outlook Stable;
--\$9.5 million class I at 'BBsf', Outlook Stable.

The class A-1, A-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class J certificates. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports