Fitch Affirms DLJ 1999-CG2

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the following classes of DLJ 1999-G2, series 1999-C1 commercial mortgage pass-through certificates:

--$20.2 million class B-3 at 'AAA/LS1'; Outlook Stable;

--$31 million class B-4 at 'A-/LS2'; Outlook Stable;

--$15.5 million class B-5 at 'BBB/LS3'; Outlook Negative;

--$19.3 million class B-6 at 'CCC/RR1';

--$11.9 million class B-7 at 'D/RR3'.

Class B-8 remains at 'D/RR6' and has been reduced to zero due to realized losses.

Classes A-1A, A-1B, A-2, A-3, A-4, B-1, and B-2 have paid in full.

The rating affirmations reflect the stable performance of the pool and sufficient credit enhancement to offset Fitch expected losses. The Rating Outlooks reflect the likely direction of any rating changes over the next one or two years.

Fitch expects potential losses of 9.5% of the remaining pool balance from loans in special servicing and loans that are not expected to refinance at maturity based on Fitch's refinance test.

Although classes B-4 and B-5 have increased credit enhancement Fitch did not upgrade due to the adverse selection and increasing concentration with only 36 of the original 343 loans remaining in the pool. Seven of the remaining loans are in special servicing. One of the loans is in bankruptcy, two are in foreclosure, and four are REO. As of the June 2011 distribution date the pool has paid down approximately 95% to $84.5 million from $1.5 billion at issuance.

The largest specially serviced loan is a 135,011 square foot anchored retail property located in Sunrise, FL. The loan transferred to special servicing on July 22, 2010 due to the borrower's failure to fund a required reserve amount. Foreclosure and receivership actions have been filed by the special servicer. Recent valuations indicate a minimal loss on this asset.

Additional information on Fitch's amended criteria for analyzing U.S. CMBS is available in the Nov. 17, 2010 report 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance then CMBS then Criteria Reports

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

Applicable Criteria and Related Research:

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', Nov. 17, 2010.

Applicable Criteria and Related Research:

Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208

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