DBRS Downgrades Two Classes of Morgan Stanley Capital I Trust, Series 2007-TOP27

DBRS has today downgraded the following classes of Morgan Stanley Capital I Trust, Series 2007-TOP27 as follows:

-- Class N to D (sf) from C (sf)
-- Class O to D (sf) from C (sf)

The downgrades follow realized losses to the above mentioned classes, which resulted from the liquidation of one loan with the March 2012 remittance.

Comfort Suites Chesapeake (Prospectus ID#69) was secured by a 129-key limited-service hotel in Chesapeake, Virginia. This loan originally transferred to special servicing in March 2010 for monetary default. The lender took title of the asset shortly after a foreclosure sale, which occurred in May 2011. A September 2011 appraisal valued the property at $3.9 million, down from $14.7 million at issuance. As of the March 2012 remittance, this loan has incurred a realized trust loss of $9.0 million, representative of an 82% loss severity.

The cumulative losses for this transaction, to date, have resulted in the full principal losses to Class P and Class O and have reduced the balance of Class N to $5.4 million.

A number of non-performing loans remain in special servicing, which DBRS considers of particular concern, including Comfort Suites BWI Airport (Prospectus ID#51), Empire Towers (Prospectus ID#52), Grand Mart Chicago Portfolio (Prospectus ID#50), TownePlace Suites (Prospectus ID#73) and Country Inn and Suites – Ft. Meyers Airport (Prospectus ID#125). These loans cumulatively comprise 2.4% of the pool balance, as of the March 2012 remittance. DBRS continues to monitor this transaction on a monthly basis, with increased focus on these pivotal loans and the other loans currently in special servicing.

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

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