Fitch Affirms BSCMS 2003-TOP10

NEW YORK--()--Fitch Ratings has affirmed all classes of Bear Stearns Commercial Mortgage Securities Trust, Series 2003-TOP 10. A detailed list of rating actions follows at the end of this press release.

The affirmations are the result of stable performance as well as increasing concentration of the pool as a result of loan payoff and amortization. Of the remaining pool, 80.7% mature in 2013 and Fitch expects additional payoffs in the coming months.

Fitch modeled losses of 3.4% of the remaining pool; expected losses of the original pool are 2.1% including losses already incurred to date (0.3%). Fitch has designated 10 loans (24.1%) as Fitch Loans of Concern, which include four specially serviced loans (2.8%).

As of the November 2012 distribution date, the pool's aggregate principal balance has been reduced by 60.5% (including 0.3% of realized losses) to $478.7 million from $1.212 billion at issuance. Cumulative interest shortfalls in the amount of $273,055 are currently affecting class O. There are 17 loans in the pool that are defeased (15.3%).

The largest contributor to Fitch's modeled losses is . a 68,163 square foot (sf) office building located in Phoenix, AZ (1.4% of the pool). As of July 2012, the property reported occupancy was 45%, which is down from 96% at issuance. The loan transferred to the special servicer in December 2011. The sponsor and special servicer are currently negotiating a modification that is projected to close in December 2012.

The second largest contributor to Fitch's modeled losses is a retail center (2.4% of the pool) located in Vacaville, CA. The center is shadow anchored by a Sam's Club and Wal-Mart. The center's occupancy has held steady at 78% since June 2010 when Old Navy vacated upon its lease expiration. The sponsor continues to aggressively market the space and intends to lease it to a national big-box retailer.

The third largest contributor to Fitch's modeled losses is a 105,833 sf retail center (1.3% of the pool) located in Altamonte Springs, FL. As of December 2011, the property reported occupancy was 63%, which is down from 99% at issuance. The loan transferred to the special servicer in May 2010 for imminent payment default. A receiver was recently appointed by the courts and the foreclosure process is ongoing.

Fitch continues to monitor the largest loan in the pool, Federal Center Plaza, which is scheduled to mature in early 2013. The General Services Administration lease (50% of the net rentable area) expires in January 2013 and lease renewal negotiations are progressing at a slower than anticipated rate.

Fitch has affirmed the following classes and revised recovery estimates as indicated:

--$321.4 million class A-2 at 'AAAsf'; Outlook Stable;
--$34.8 million class B at 'AAAsf'; Outlook Stable;
--$37.9 million class C at 'AAsf'; Outlook Stable;
--$12.1 million class D at 'Asf'; Outlook Stable;
--$15.2 million class E at 'BBB+sf'; Outlook Stable;
--$9.1 million class F at 'BBBsf'; Outlook Stable;
--$7.6 million class G at 'BBB-sf'; Outlook Stable;
--$10.6 million class H at 'BBsf'; Outlook Stable;
--$4.5 million class J at 'Bsf'; Outlook Stable;
--$6.1 million class K at 'Bsf'; Outlook Negative;
--$4.5 million class L at 'CCCsf'; RE 100%;
--$3.0 million class M at 'CCCsf'; RE 15%;
--$3.0 million class N at 'CCsf'; RE 0%.

Fitch does not rate class O. The ratings on class X-1 and X-2 were previously withdrawn. Class A-1 has paid in full.

Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21, 2011).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869

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.

Contacts

Fitch Ratings
Primary Analyst:
Jay Bullie, +1-312-368-2079
Associate Director
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst:
Jay Bullie, +1-312-368-2079
Associate Director
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com