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 L 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 May 2012. In addition, DBRS has removed the Interest in Arrears designation from Class L. While Class L continues to show interest in arrears, the class has defaulted, experiencing principal writedown, and therefore the interest in arrears designation is no longer relevant.

Country Inn & Suites – Fort Myers Airport Hotel (Prospectus ID#125) was secured by an 85-key limited-service hotel located near the airport, less than a mile west of I-75 in Fort Myers, Florida. This loan was transferred to special servicing in February 2009 as a result of monetary default, and the property became real estate owned (REO) after an April 2011 foreclosure sale. The most recent appraisal, dated February 2012, valued the property at $1.3 million, up from a September 2010 appraised value of $1.2 million. As of May 2012, net proceeds received on liquidation were just over $1.3 million. The realized trust loss associated with this loan is $4.3 million.

Cumulative realized losses to the trust now total just over $42 million. As of the May 2012 remittance, the outstanding balance of loans in special servicing exceeds $106 million.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

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