DBRS Downgrades One Class of Morgan Stanley Capital I Trust, Series 2007-IQ16

DBRS has today downgraded one class of Morgan Stanley Capital I Trust, Series 2007-IQ16 (the Trust), as follows:

-- Class L to D (sf) from C (sf)

This rating action reflects the most recent losses to the Trust, resulting from the liquidation of one loan in September 2012. As of the September 2012 remittance report, realized losses for this loan total $3.2 million; to date, 17 loans have liquidated at a cumulative loss of $80.85 million.

Hampton Inn-Seffner (Prospectus ID#99) was secured by a 75-room limited-service hotel property in Seffner, Florida, approximately 12 miles east of the Tampa CBD. The loan transferred to the special servicer in February 2009 due to payment default, after the borrower was unable to continue to cover cash flow shortfalls to keep the loan current. The loan had been Real Estate Owned (REO) since August 2011. At issuance, the property was valued at $8.7 million and the most recent appraisal, from October 2011, valued the property at $4.1 million. According to the September 2012 remittance report, the property was sold for $4.25 million, resulting in a realized loss to the trust of $3.2 million and a loss severity of 60.9%.

For additional detail on the DBRS viewpoint for this transaction, and for details on the largest loans in the pool, the loans in special servicing and the loans on the servicer’s watchlist, please see the September 2012 Monthly CMBS Surveillance Report for this transaction, which will be published shortly.

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.