Fitch Upgrades DLJ 1999-CG1

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has upgraded one class of DLJ Commercial Mortgage Corp., commercial mortgage pass-through certificates series 1999-CG1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade of class B-6 reflects the high credit enhancement and continued stable performance of the two remaining loans in the pool. The affirmations of class B-7 and B-8 reflect losses already realized.

As of the May 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.8% to $15.5 million from $1.24 billion at issuance. Classes B-7 through C have previously incurred unpaid interest shortfalls. Two loans remain, the larger of which is fully amortizing and the other is a 20 year balloon loan. Both loans have remained currently throughout their terms and have not been modified.

The largest loan in the pool is The Links at Bixby (50.6%), which is secured by a garden style multifamily property consisting of 324 units located in Bixby, OK, near Tulsa. As of year-end 2014, the property is 98% occupied with a servicer reported debt service coverage ratio (DSCR) of 1.21x. The loan is fully amortizing and matures in March 2023; however, the prepayment penalty expires in 2018.

The second loan, The Shoppes at Longwood (49.4%), is secured by a 141,940 square foot (sf) retail property located in Kennett Square, PA. The largest tenants include Super Fresh (31%), lease expiration Aug. 31, 2017; T.J. Maxx (17%), expiration Jan. 31, 2019; and Staples (13%), expiration Nov. 30, 2017. As of year-end 2014, the property is 100% occupied. The year-end (YE) 2014 DSCR remains stable at 1.89x. The loan matures in January 2019 with an open period beginning in November 2018.

RATING SENSITIVITIES

The rating on class B-6 is expected to remain stable given the concentration with only two loans remaining. Further upgrades are not expected unless renewal information becomes available on the remaining retail loan. In the unlikely event one or both of the loans default, downgrades are possible if significant losses are expected. Classes B-7 and B-8 will remain at 'Dsf' as losses have been realized.

Fitch has upgraded the following class:

--$7.4 million class B-6 to 'BBsf' from 'Bsf', Outlook Stable.

Fitch has affirmed the ratings and revised the recovery estimates (REs) of the following classes:

--$8.1 million class B-7 at 'Dsf', RE 80%;

--$0 class B-8 at 'Dsf', RE 0%.

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

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (March 31, 2015);

--'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=864268

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=984602

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:
Britt Johnson, +1-312-606-2341
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
[email protected]

Source: Fitch Ratings

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