DBRS Downgrades 14 Classes and Confirms 7 Classes of Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28; Releases Surveillance Report

DBRS has today downgraded Classes A-J through O, and confirmed the remaining classes of the Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP28 transaction. All trends are Stable, with the exception of Classes F and G, which are Negative.

The downgrades reflect the decreased performance of the transaction since issuance and throughout 2009. All 209 loans remain in the pool, as of May 2010. The transaction benefits from 6 loans (20.3% of the pool) being shadow rated, including the two largest loans in the deal. The main concern in this transaction is the six specially serviced loans, representing 1.8% of the pool. Four of the specially serviced loans are on track for foreclosure.

Overall, the pool reported a weighted-average debt-service coverage ratio (WADSCR) of 1.37x (on a whole-loan and P&I basis), versus issuance of 1.44x. The pool’s weighted-average loan-to-value ratio (WALTV) has increased from 61.8% at issuance, to 62.2%.

Geographically, the pool has nearly identical concentrations as it had at issuance. California remains the largest geographic concentration (14.7% of the pool). By property type, retail assets lead the transaction at 52.4% of the current pool balance. As of May 2010, the trust balance totals $1,740,529,534.

DBRS has HotListed two loans because of low occupancy and a low DSCR: The Cove Apartments (Prospectus ID#8) and The Crowne Plaza Hotel – Houston (Prospectus ID#27). For further information, please refer to the Surveillance Report.

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 CMBS rating.