Correction: Fitch Takes Various Rating Actions on 9 CMBS Small Balance Transactions

NEW YORK--(BUSINESS WIRE)--(This is an amended version of a press release issued Dec. 23, 2009, containing revised information on the rating for CBA 2007-1 class A.)

Fitch Ratings places the following small balance commercial loan transactions on Rating Watch Negative as follows:

Hometown Commercial Trust 2006-1:

--Interest-only class X at 'AAA', Rating Watch Negative.

Hometown Commercial Trust 2007-1:

--Interest-only class X at 'AAA', Rating Watch Negative.

CBA 2005-1:

--$79.4 million class A at 'AAA', Rating Watch Negative;

--Interest-only class X-2 at 'AAA', Rating Watch Negative;

--$7.5 million class M-1 at 'AA', Rating Watch Negative;

--$5.6 million class M-2 'BBB+', Rating Watch Negative;

--$2.7 million class M-3 at 'BBB-', Rating Watch Negative.

CBA 2006-1:

--$90 million class A at 'AAA', Rating Watch Negative;

--Interest-only X-1 class at 'AAA', Rating Watch Negative;

--$4.6 million class M-1 at 'AA-', Rating Watch Negative;

--$4.6 million class M-2 at 'BBB', Rating Watch Negative;

--$5 million class M-3 at 'BB-', Rating Watch Negative.

CBA 2006-2:

--Interest-only class X-1 at 'AAA', Rating Watch Negative.

The $84.2 million class A, $3.7 million class M-1, and $4.9 million class M-2 remain on Rating Watch Negative.

CBA 2007-1:

--$94 million class A at 'AA-', Rating Watch Negative;

--$109.7 million class X-1 at 'AAA', Rating Watch Negative;

--$3.5 million class M-1 at 'A-', Rating Watch Negative;

--$3.7 million class M-2 at 'BBB-', Rating Watch Negative;

--$2.2 million class M-3 at 'BB-', Rating Watch Negative;

--$1.4 million class M-4 at 'B-', Rating Watch Negative.

LaSalle 2006-MF3:

--$315.7 million class A at 'AA', Rating Watch Negative;

--Interest-only class X at 'AAA', Rating Watch Negative;

--$8 million class B at 'A', Rating Watch Negative;

--$12.9 million class C at 'BBB', Rating Watch Negative;

--$8 million class D at 'BB+', Rating Watch Negative;

--$3.7 million class E at 'B', Rating Watch Negative.

LaSalle 2006-MF4:

--$332.9 million class A at 'AA', Rating Watch Negative;

--$Interest-only class X at 'AAA', Rating Watch Negative;

--$7.9 million class B at 'A', Rating Watch Negative;

--$11.8 million class C at 'BBB', Rating Watch Negative;

--$9 million class D at 'BB', Rating Watch Negative;

--2.3 million class E at 'BB', Rating Watch Negative.

LaSalle 2007-MF5:

--$381.3 million class A at 'AA-', Rating Watch Negative;

--$Interest-only class X at 'AAA', Rating Watch Negative;

--$9.2 million class B at 'A+', Rating Watch Negative;

--$13.4 million class C at 'BBB-', Rating Watch Negative;

--$8.5 million class D at 'BB', Rating Watch Negative;

--$3 million class E at 'BB-', Rating Watch Negative;

--$4.9 million class F at 'B-', Rating Watch Negative.

In addition, the following classes have incurred principal losses and are downgraded as follows:

LaSalle 2006-MF4:

--class H to 'D/RR6' from 'C/RR6';

--class J to 'D/RR6' from 'C/RR6';

--class K to 'D/RR6' from 'C/RR6'.

LaSalle 2007-MF5:

--class K to 'D/RR6' from 'C/RR6';

--class L to 'D/RR6' from 'C/RR6';

--class M to 'D/RR6' from 'C/RR6'.

The Rating Watch Negative actions are due to the increasing number of specially serviced loans and interest shortfalls within the transactions since Fitch's last rating action. Severe market value declines have resulted in the increasing number of specially serviced loans and correspond to very high loss severities on loans liquidated within the last year.

Fitch expects classes in some transactions to incur future interest shortfalls resulting from advances, appraisal reductions, special servicing and legal fees. Fitch does not expect current or future shortfalls to be recovered.

The transactions are collateralized by small balance commercial loans secured by multifamily, mobile home parks and mixed use properties.

Fitch will resolve the Rating Watch status after a review of the remaining loans in the transaction and updated information and valuations on the loans currently in special servicing.

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

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.