Fitch Upgrades CSFB 2006-TFL2

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded three and affirmed two classes of Credit Suisse First Boston Mortgage Securities Corp., series 2006-TFL2. Since issuance, the transaction has been reduced by nearly 98% from paydown and dispositions. Only one loan, the JW Marriott Starr Pass, remains. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades are due to improved recovery prospects for the JW Marriott Starr Pass, as well as higher credit enhancement from loan payoffs. The JW Marriott Starr Pass consists of a 575-room full service hotel and a 27-hole Arnold Palmer-designed championship golf course, located in Tucson, AZ. The hotel, which offers 88,000 sf of meeting space including a 20,000 sf ballroom, was opened in 2005 and maintains a high curb appeal with well-kept landscaping and an attractive design.

In April 2010, the loan transferred to special servicing for imminent default. Performance did not meet expectations from issuance, and the recession hit the Southwest, specifically the Tucson market, particularity hard. In addition to performance related issues, the workout has also faced setbacks due to legal disputes between the loan servicer and borrower.

According to the servicer, progress has been made in working through the court proceedings, and resolution of certain key issues is on the horizon. In addition, a recent appraisal shows improvement to value estimates. The current rating actions reflect these positive updates.

RATING SENSITIVITIES

The ratings are expected to remain stable in the near term. While property valuation has improved, further downgrades to the already distressed classes are possible if workout negotiations continue to stall.

DUE DILIGENCE USAGE

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

Fitch has upgraded the following classes:

--$949,356 class G to 'BBBsf' from 'BBsf'; Outlook Stable;

--$19 million class H to 'BBsf' from 'CCCsf'; Outlook Stable assigned;

--$20 million class J to 'Bsf' from 'CCCsf'; Outlook Stable assigned.

Fitch affirms the following classes:

--$22 million class K at 'CCCsf'; RE 100%;

--$16.1 million class L at 'Dsf'; RE 70%.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 20 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862818

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=986631

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=986631

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/20150618006050/en/

Fitch Ratings
Primary Analyst
Chris Bushart
Director
+1-212-908-0606
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
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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