Fitch Affirms & Withdraws Petra 2007-1's Ratings

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed six classes of Petra CRE CDO 2007-1 (Petra 2007-1). Fitch also withdraws all ratings due to a lack of relevancy. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The transaction is severely undercollateralized. The CDO has only one asset remaining in the portfolio -- a defaulted $6.3 million preferred equity position on the LXR Hotel Portfolio, which now includes only four hotels from an original 13 property luxury hotel portfolio.

Since the last rating action on March 31, 2015, there has been de minimis paydown to the senior class. Additionally, as of the April 2015 trustee report, two of the three assets in place at last rating action have now been written down to zero. However, no credit was given to the assets in Fitch's earlier analysis as they were no longer backed by any remaining collateral and had no further recovery expectation.

The CDO's liabilities exceed collateral by over $330 million with all classes having negative credit enhancement. Further, limited interest and principal proceeds will be available to pay the interest on the timely pay class E. The notes' current ratings of 'Csf' reflect Fitch's view that the bonds will default at legal maturity or earlier.

In its March 2015 rating action commentary, Fitch stated that it was considering withdrawing the ratings due to lack of relevance to the agency's coverage combined with commercial reasons. Fitch encouraged investors to contact it within 30 days if they had any interest in continued coverage of the transaction. Given that no investor indicated such an interest, Fitch is today withdrawing the ratings as they are no longer considered analytically meaningful.

Fitch affirms and withdraws the following classes:

--$15.1 million class E at 'Csf'; RE 5%;

--$36.7 million class F at 'Csf'; RE 0%;

--$22.8 million class G at 'Csf'; RE 0%;

--$30.6 million class H at 'Csf'; RE 0%;

--$54.5 million class J at 'Csf'; RE 0%

--$47.9 million class K at 'Csf'; RE 0%.

Class A-1 through D has paid in full. Fitch does not rate the preferred shares.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Surveillance Criteria for U.S. CREL CDOs' (November 2014);

--'Global Rating Criteria for Structured Finance CDOs' (July 2014);

--'Global Structured Finance Rating Criteria' (March 2015).

Applicable Criteria and Related Research:

Surveillance Criteria for U.S. CREL CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=811268

Global Rating Criteria for Structured Finance CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751136

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984596

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Stacey McGovern
Director
+1 212-908-0722
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1 212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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