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

DBRS, Inc. (DBRS) has today downgraded one class in Morgan Stanley Capital I Trust, Series 2007-TOP27. The Class F rating has been downgraded to D (sf) from C (sf).

The downgrade follows the liquidation of Springfield Hotel Portfolio (Prospectus ID#13) from the pool with the January 2015 remittance. Springfield Hotel Portfolio, previously the largest loan in special servicing, was secured by two neighboring limited-service hotels located in Springfield, Illinois. The loan was originally scheduled to mature in April 2012 and was transferred to special servicing when the borrower submitted a hardship letter warning of a balloon mortgage payment default. Subsequent modification negotiations fell through and the property became REO in April 2013. The recent sale of the properties resulted in a 58.8% loss severity to the loan balance and incurred a realized trust loss of $21.5 million. The trust loss wiped the remaining balance on Class G, and reduced the principal balance on Class F by 48.4%. As of the January 2015 remittance, there are two loans still in special servicing, with a cumulative outstanding principal balance of $31.8 million.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction including details on the largest loans in the pool, the loans in special servicing and the loans on the servicer’s watchlist. The January 2015 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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 (January 2015), which can be found on our website under Methodologies.

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.