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

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

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

DBRS has also removed Interest in Arrears from Classes D, E and F.

The downgrade is a result of the most recent realized losses to the Trust, which occurred in November 2014 after the Ashtabula Mall loan was liquidated from the pool. The loan was previously secured by a regional mall in Ashtabula, Ohio. The loan initially transferred to special serving in September 2010 for imminent default, with the master servicer deeming the loan to be non-recoverable in May 2013. At issuance, the property was valued at $57.8 million and the most recent appraisal from December 2013 valued the property at $5.2 million. According to the November 2014 remittance report, the property was sold for approximately $6.3 million, resulting in a realized loss to the trust of $39.2 million and a loss severity of 100%.

For additional details 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 November 2014 Monthly CMBS Surveillance Report for this transaction, which will be published shortly.

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.

DBRS will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrs.com.