Fitch Upgrades 2 Classes of MSDW 2001-TOP1

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has upgraded two classes and affirmed three classes of Morgan Stanley Dean Witter Capital I Trust (MSDW) commercial mortgage pass-through certificates series 2001-TOP1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades are based on the increased percentage of defeased loans as well as increased credit enhancement (CE) to the senior class due to paydown from maturing loans, principal amortization and limited near-term expected losses. The pool has experienced $29.4 million (2.5% of the original pool balance) in realized losses to date. Of the original 166 loans, 11 remain, each of which matures in 2015 (8.8%), 2016 (0.8%) or 2020 (90.4%). There are no specially serviced loans and no Fitch loans of concern.

As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 99% to $11.4 million from $1.16 billion at issuance. Since last review, the pool balance has been reduced by 49%, or $9.7 million. Per the servicer reporting, three loans (15.6% of the pool) are defeased. Interest shortfalls are currently affecting classes J through N.

The largest loan (48.8%) in the pool is secured by an 83,013 square foot (sf) office property located in Eden Prairie, MN, in the Minneapolis-St. Paul metropolitan statistical area (MSA). In April 2012, the property became vacant after the single tenant terminated its lease and vacated the property. In August 2012, the property was restored to 100% occupancy after two new tenants, signed new leases through November 2017 and November 2018, respectively. The year-end 2013 debt service coverage ratio (DSCR) improved to 1.32x, an increase from 0.18x at year-end 2012. The loan matures in December 2020.

The remaining 10 loans in the pool have outstanding balances of less than $1 million and are fully amortizing with low Fitch loan to values (LTVs).

RATING SENSITIVITIES

Class G maintains a Stable Outlook as the CE remains high and continued paydown is expected from defeased and fully amortizing loans. Additional upgrades are not projected due to the increasing concentration of the remaining assets in the pool, the binary risk associated with the largest loan in the pool, as well as the lease maturities prior to loan maturities. Further rating changes are not anticipated for the remaining life of the pool as additional paydown will be offset by further collateral concentration.

Fitch upgrades the following classes and maintains the Rating Outlooks or revises REs as indicated:

--$1.8 million class G to 'Asf' from 'Bsf'; Outlook Stable.

--$8.7 million class H to 'CCCsf' from 'Csf'; RE 100%.

Fitch affirms the following classes and revises REs as indicated:

--$0.9 million class J at 'Dsf'; RE 10%;

--$0 class K at 'Dsf'; RE 0%;

--$0 class L at 'Dsf'; RE 0%.

The class A-1, A-2, A-3, A-4, B, C, D, E,F and X-2 certificates have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the rating on the class M and on the interest-only class X-1 certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=981530

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
Primary Analyst
Valerie Jayson
Associate Director
+1-312-368-3116
Fitch Ratings, Inc.
70 W Madison Street
Chicago, IL 60602
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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