Fitch Affirms Salomon Brothers 1999-C1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed two classes of Salomon Brothers Mortgage Securities VII, Inc., commercial mortgage pass-through certificates series 1999-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect the pool's overall stable performance since the last review in March 2015 and its concentration. Three loans/assets remain in the transaction from the original 213 loans: one defeased (65.6%), one real estate owned (REO) asset (21.1%), and one performing loan (13.3%). The senior class, class K, is fully covered by the defeased asset which matures in August 2016.

As of the January 2016 distribution date, the pool's aggregate principal balance has been reduced by 99.3% to $5.1 million from $734.9 million at issuance. Interest shortfalls are currently affecting classes L and M.

The REO asset is a 53,000 square foot (sf) mixed use property (retail, office and residential) located in Troy, NY. The residential portion of the property was operated as an extended stay hotel on the upper floors. The loan transferred to special servicing in December 2008 due to payment default and has been REO since November 2015. The property is currently being marketed for sale.

The remaining loan in the pool is secured by a 96 unit multifamily property located in Oklahoma City, OK. The fully amortizing loan matures in 2028. Performance at the property has been stable. The servicer reported occupancy and a debt service coverage ratio were with 92.7% and 2.34x, respectively as of year to date Sept. 30, 2015.

RATING SENSITIVITIES

The Rating Outlook on class K remains Stable. Full repayment of the class is supported by defeased collateral maturing in the next six months. Class L has already incurred losses.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following classes:

--$651,137 class K at 'AAAsf'; Outlook Stable.

--$4.2 million class L at 'Dsf'; RE 65%.

The class A-1, A-2, B, C, D, E, F, G, H and J certificates have paid in full. Fitch does not rate the class M certificate. Fitch previously withdrew the rating on the interest-only class X certificate.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=999947

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=999947

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160224006425/en/

Fitch Ratings
Primary Analyst
Tiffany Pierce
Associate Director
+1-212-908-9107
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Karen Trebach
Senior Director
+1-212-908-0215
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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