Fitch Affirms Distressed Ratings in BSCMT 2006-TOP24

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 14 classes of Bear Stearns Commercial Mortgage Securities Trust commercial mortgage pass-through certificates series 2006-TOP24 (BSCMT 2006-TOP24). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of the transaction's distressed ratings reflect the pool's significant concentration with only 17 loans remaining; four of which (61.9% of the pool), including the largest loan in the pool (55.7%), are specially serviced. Additionally, five loans (13.2%) were flagged as Fitch Loans of Concern due to failure to pay off at maturity or continued deteriorating performance.

As of the October 2016 distribution date, the pool's aggregate principal balance has been reduced by 92% to $123.3 million from $1.5 billion at issuance. One loan (1.4%) is defeased and interest shortfalls are currently affecting classes B and below.

High Expected Losses: The pool continues to have high expected losses relative the remaining collateral balance. Losses on class A-J remain possible.

Specially Serviced Loans: The specially serviced loans (61.9%) include the largest loan in the pool. Dulles Executive Plaza (55.7%), is secured by a 379,596 sf office property located in Herndon, VA. The property is primarily occupied by Lockheed Martin (rated 'BBB+'/Stable Outlook by Fitch as of Oct. 2016) through two leases expiring in February 2019 (33%) and November 2021 (50%). The loan transferred to special servicing in August 2016 due to imminent maturity default. The servicer reported occupancy and debt service coverage ratio DSCR) were 89.6% and 1.12x, respectively, as of year-end (YE) 2015.

Loans Past Maturity: None of the specially serviced loans paid off at their respective 2016 scheduled maturity dates. Four of the additional five Fitch Loans of Concern (11.3%) also failed to pay off at maturity dates in August, September and October 2016.

Maturity Concentration: The remaining loans, excluding Fitch Loans of Concern and those that are specially serviced, mature in 2021 (17.4%), 2026 (4%) and 2036 (3.5%).

RATING SENSITIVITIES

Fitch applied additional stresses in its analysis given the pool's concentration risk. The distressed ratings reflect the additional stress and Fitch's expectation of losses. The potential for upgrades to class A-J are limited due to the increased concentration of underperforming loans and the credit quality of the remaining collateral. Should recoveries on specially serviced asset dispositions exceed expectations, future upgrades are possible. Downgrades are likely to the distressed classes should additional losses be realized.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

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

Fitch has affirmed the following classes:

-- $87.7 million class A-J at 'CCCsf'; RE 45%;

-- $28.8 million class B at 'Csf'; RE 0%;

-- $6.9 million class C at 'Dsf'; RE 0%;

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

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

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

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

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

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

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

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

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

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

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

Classes A-1, A-2, A-3, A-AB, A-4 and A-M were repaid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)https://www.fitchratings.com/site/re/886006

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)https://www.fitchratings.com/site/re/883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)https://www.fitchratings.com/site/re/873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1013789

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1013789

Endorsement Policyhttps://www.fitchratings.com/regulatory

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT 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.

Copyright © 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third-party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed.

The information in this report is provided "as is" without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers.

For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

View source version on businesswire.com: http://www.businesswire.com/news/home/20161026006710/en/

Fitch Ratings, Inc.
Primary Analyst
Tiffany Pierce, +1-212-908-9107
Associate Director
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• SpaceX completes record $60 billion acquisition of AI coding platform Cursor
• Delek Logistics closes $230M unit offering at $50 per unit
• Vivos Therapeutics posts 35% revenue gain but widens net loss