DBRS Places Sixteen Classes of Morgan Stanley Capital I Trust, Series 2005-HQ6 on Under Review Negative

DBRS has today placed Classes A-J through Q of the Morgan Stanley Capital 1 Trust, Series 2005-HQ6 transaction Under Review Negative.

• Class A-J to Under Review Negative
• Class B to Under Review Negative
• Class C to Under Review Negative
• Class D to Under Review Negative
• Class E to Under Review Negative
• Class F to Under Review Negative
• Class G to Under Review Negative
• Class H to Under Review Negative
• Class J to Under Review Negative
• Class K to Under Review Negative
• Class L to Under Review Negative
• Class M to Under Review Negative
• Class N to Under Review Negative
• Class O to Under Review Negative
• Class P to Under Review Negative
• Class Q to Under Review Negative

The changes are primarily due to the high percentage of delinquent loans and specially serviced loans, in addition to the cash flow decline and resulting negative performance of the overall pool. Loans representing approximately 43% of the pool have experienced cash flow declines since issuance, with some declines being quite substantial. There are six delinquent loans that combined represent 2.7% of the pool. Additionally, there are four loans that are performing specially serviced loans representing, 7.3% of the pool. The two largest performing specially serviced loans, Coronado Center and Oviedo Marketplace, were transferred to special servicing due to the bankruptcy filing of its parent company, General Growth Properties, Inc. (GGP). DBRS is anticipating principal losses upon resolution of each of the specially serviced loans, except for the two GGP sponsored loans. DBRS will take further action once a better understanding of expected losses is achieved; a surveillance report providing additional analytical detail will be provided at that time.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology and CMBS Surveillance, which can be found on our website under Methodologies.

This is a Structured Finance rating.

This rating is based on public information.