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

DBRS has today downgraded the Commercial Mortgage Pass-Through Certificates Series 2007-TOP27, Class H of Morgan Stanley Capital I Trust, Series 2007-TOP27 to D (sf) from C (sf).

The downgrade follows realized losses incurred by the trust as a result of the liquidation of one loan in October 2012. In addition, DBRS has removed the Interest in Arrears designation from Class H.

JC Penney-Ground Lease (Prospectus ID#161) was secured by the fee simple interest in a 10.8 acre parcel of land improved with a 120,000 square foot (sf) retail building leased to JC Penney. The subject is located in Springfield, Massachusetts, and considered part of the Eastfield Mall development. This loan transferred to special servicing in December 2011, after which the special servicer pursued a note sale. The realized loss attributed to this loan was $2.5 million as of the October 2012 remittance (70% of the outstanding loan balance at the time of liquidation).

Cumulative realized losses to the trust now total over $55 million. The outstanding balance of loans in special servicing exceeds $85 million, as of the October 2012 remittance.

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 (January 2012) and CMBS North American Surveillance (May 2011), which can be found on our website under Methodologies.