Fitch Upgrades 3 Classes of BSCMS 2004-TOP16

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded three and affirmed seven classes of Bear Stearns Commercial Mortgage Securities Trust 2004-TOP16 commercial mortgage pass-through certificates series. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades are based on the stable performance of the remaining collateral and a strong paydown schedule, as 50% of the remaining pool is structured with full amortization.

As of the October 2015 distribution date, the pool's aggregate principal balance has been reduced by 94.7% to $60.8 million from $1.16 billion at issuance. Per the servicer reporting, three loans (6.1% of the pool) are defeased. Interest shortfalls are currently affecting classes K through P.

Fitch modeled losses of 10.9% of the remaining pool; expected losses on the original pool balance total 1.6%, including $12.3 million (1.1% of the original pool balance) in realized losses to date. Fitch has designated three loans (34.4%) as Fitch Loans of Concern, which includes two specially serviced assets (30.6%).

The largest contributor to expected losses is the specially-serviced Wal-Mart-Carlyle Plaza loan (7% of the pool), which is secured by a 126,846 SF single-tenant retail center located in Belleville, IL, approximately 20 miles southwest of St. Louis. The loan transferred to special-servicing in August 2013 for maturity default. The sole tenant, Wal-Mart, vacated the property in 2010 and continued paying rent until their lease expiration, which was coterminous with the loan maturity. Additionally, the special servicer reports that there are environmental issues and is waiting on the State's position to determine its course of action.

The largest loan in the pool, 110 West 32nd street, is a specially-serviced asset (23.6%), comprising of an eight-story office and retail and a connecting seven-story office and retail building located in New York, NY. The loan transferred to Special Servicing in November 2014 for maturity default. The borrower's prior efforts to refinance the loan or sell the property have been unsuccessful. The Borrower has continued to make monthly payments of debt service. As of October 2015, the loan-to-value is 43%.

RATING SENSITIVITIES

Rating Outlooks on classes E through H are Stable due to increasing credit enhancement from continued paydown from defeasance, New York City cooperative loans and low leveraged loans over the next two years.

DUE DILIGENCE USAGE

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

Fitch upgrades the following classes:

--$10.1 million class F to 'AAAsf' from 'Asf'; Outlook Stable;

--$11.6 million class G to 'BBBsf' from 'BBsf'; Outlook Stable;

--$10.1 million class H to 'BBsf' from 'Bsf'; Outlook Stable.

Fitch affirms the following classes and REs as indicated:

--$15.4 million class E at 'AAAsf'; Outlook Stable;

--$2.9 million class J at 'CCCsf'; RE 100%;

--$4.3 million class K at 'CCsf'; RE 100%;

--$5.8 million class L at 'Csf'; RE 25%;

--$696,759 class M at 'Dsf'; RE 0%;

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

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

The class A-1, A-2, A-3, A-4, A-5, A-6, B, C and D and X-2 certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates.

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. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=993534

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993534

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/20151105006871/en/

Fitch Ratings
Primary Analyst
Catherine Barbieri, +1-212-908-0638
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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