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

DBRS has today downgraded Class G of Bear Stearns Commercial Mortgage Securities Trust 2007-PWR18 to D (sf) from C (sf).

In conjunction with the rating action stated above, DBRS has removed the Interest in Arrears designation from Class G, as the class has defaulted.

The downgrade is a result of trust loss realized to Class G following the liquidation of one loan from the pool in October 2013. Since the last full surveillance review of this transaction, three loans have liquidated from the pool. Prior to the October 2013 remittance, the liquidation of two loans, Park Avenue Apartments (Prospectus ID#10) and Heathrow International Office (Prospectus ID# 64) in March 2013 and May 2013, respectively, contributed to the reduction of principal to Class H, which was already rated D (sf). The October 2013 liquidation of Candlewood Suites Northwoods Mall (Prospectus ID#52) eliminated the remaining principal to Class H and reduced principal to Class G by approximately 13.9%.

Five loans remain in special servicing as of the October 2013 remittance, and these loans have an aggregate outstanding balance of $84.6 million. The largest loan in special servicing is Southlake Mall, secured by a regional mall in Morrow, Georgia. An updated appraisal was recently finalized and valued this property at $58.0 million, down from a previous value of $80.0 million. The outstanding balance to bonds currently rated C (sf) by DBRS totals $84.2 million. DBRS is planning a full surveillance review of this transaction in the coming months.

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

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.

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