DBRS Downgrades One Class of Morgan Stanley Capital I Trust, Series 2007-TOP27

DBRS has today downgraded the Commercial Mortgage Pass-Through Certificates, Series 2007-TOP27, Class M of Morgan Stanley Capital I Trust, Series 2007-TOP27 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 M, as well as from Classes J and K. While Class M continues to show interest in arrears, the class has defaulted, experiencing principal writedown and, therfore, the interest in arrears designation is no longer relevant.

TownePlace Suites (Prospectus ID#73) was secured by a 119-key limited-service hotel in Chesapeake, Virginia. This loan was transferred to special servicing in March 2010 as a result of monetary default, and the property became real estate owned (REO) in May 2011. A buyer was identified for the asset, and net proceeds received on liquidation were just over $3.5 million as of April 2012. The realized trust loss associated with this loan is $9.2 million.

Cumulative realized losses to the trust now total over $37 million. The outstanding balance of loans in special servicing exceeds $102 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.