DBRS Downgrades One Class of Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP26

DBRS Limited (DBRS) downgraded the rating of the following class of Commercial Mortgage Pass-Through Certificates, Series 2007-TOP26 issued by Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP26 (the Trust):

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

In conjunction with this rating action, DBRS has also removed the Interest in Arrears designation on Class E.

The downgrade to Class E is the result of the most recent realized loss to the Trust, which occurred with the resolution of the 400 East Market Street loan (Prospectus ID#166), which was liquidated from the Trust at a loss of $712,193 with the March 2018 remittance. The loan, which was secured by a retail property in West Chester, Pennsylvania, was transferred to special servicing in February 2017 due to maturity default. The last reported property valuation, dated April 2017, valued the property at $2.0 million, down from $3.1 million at issuance. The loan was resolved through a discounted payoff, which was reflected in the March 2018 remittance. The servicer reported proceeds of $1.5 million, with a loss severity of 35.7%. The loss wiped the remaining balance on Class F and reduced the principal balance on Class E by 1.6%.

As of the March 2018 remittance, there are 16 loans remaining in the pool (current Trust balance of $326.0 million), six of which are in special servicing, with a cumulative outstanding principal balance of $141.0 million.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

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

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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 under Related Documents or by contacting us at info@dbrs.com.

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

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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