DBRS Downgrades One Class of Bear Stearns Commercial Mortgage Securities Trust 2007-PWR18

DBRS has today downgraded the Commercial Mortgage Pass-Through Certificates, Series 2007-PWR18, Class K issued by Bear Stearns Commercial Mortgage Securities Trust 2007-PWR18 to D (sf) from C (sf).

The downgrade follows realized losses incurred on the trust following the liquidation of one loan in April 2012. In addition, DBRS has removed the Interest in Arrears designation from Class K and added the Interest in Arrears designation to Classes G and H. While Class K continues to show interest in arrears, the class has defaulted, experiencing principal writedown and, therefore, the interest in arrears designation is no longer relevant.

BGK Portfolio (Prospectus ID#97) was secured by three office properties totaling over 133,000 square feet. This loan transferred to special servicing in January 2011 for imminent payment default. Although the borrower marketed the properties for sale while continuing to remit payments to the servicer, a purchaser was not identified and the borrower requested a deed in lieu (DIL) of foreclosure. The DIL was closed in November 2011, and the loan has been liquidated from the pool. The net proceeds received on liquidation were just over $3.3 million as of April 2012. The realized trust loss associated with this loan is $3.0 million.

Cumulative realized losses to the trust now total over $81 million. The outstanding balance of loans in special servicing exceeds $209 million as of the April 2012 remittance.

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.