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

DBRS Limited (DBRS) has today downgraded one class in the Morgan Stanley Capital I Trust, Series 2007-TOP27 transaction as follows:

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

The rating downgrade is the result of the most recent realized losses to the trust, which occurred after the 791 Park of Commerce loan (Prospectus ID#21) was liquidated from the trust at a loss of $15.2 million, according to the June 2015 remittance. 791 Park of Commerce was secured by an office property located in Boca Raton, Florida and was initially scheduled to mature in July 2017. The loan transferred to special servicing in February 2013 due to imminent payment default, and the last reported property valuation occurred in June 2014 at $15.3 million, down from $37.5 million at issuance. With the June 2015 remittance, the loan was liquidated with a loss severity of 54.7%, and as a result of this loan’s liquidation from the trust, outstanding interest shortfalls due to Class E and Class F were recouped. The trust loss wiped the remaining balance on Class F and reduced the principal balance on Class E by 9.3%. As of the June 2015 remittance, there are two loans still in special servicing, with a cumulative outstanding principal balance of $28.3 million.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction. The June 2015 Monthly CMBS 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.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The applicable methodologies are North American CMBS Rating Methodology (June 2015) and CMBS North American Surveillance (January 2015), which can be found on our website under Methodologies.