Fitch Affirms CD Commercial Trust 2007-CD5

CHICAGO--()--Fitch Ratings has affirmed all classes of CD Commercial Mortgage Trust 2007-CD5, commercial mortgage pass-through certificates, due to stable performance since Fitch's last review. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations reflect a slight increase in cumulative loss expectations, which were offset by paydown of approximately 9% since Fitch's previous rating action. Fitch modeled losses of 6.2% (9% cumulative transaction losses, which includes losses realized to date) based on expected losses on the specially serviced loans and loans that are not expected to refinance at maturity.

As of the December 2012 distribution date, the pool's aggregate principal balance has decreased 18.6% to $1.7 billion from $2.09 billion at issuance. As of December 2012, there are cumulative interest shortfalls in the amount of $1.6 million, currently affecting classes N through H. Fitch has designated 50 loans (22.8%) as Fitch Loans of Concern, which includes 12 specially serviced loans (4.3%).

The largest contributor to modeled losses is the Lincoln Square loan (9.4%). The loan is collateralized by a 405,978 square foot (sf) office property located in Washington, DC. The property encompasses one-half of the block surrounded by 10th, 11th, E and F Streets and is located within the East End submarket of Washington, D.C. The YE 2011 net cash flow DSCR was 1.24x compared to 1.31x underwritten at issuance. Occupancy dipped slightly, to 96.7%, as of June 2012. The property had previously been 100% occupied since issuance.

The second largest contributor to modeled losses is a 73,000 sf retail property(0.9%), located in Culpeper, VA. The loan was transferred to the Special Servicer in March 2011 for imminent default. The property became REO in February 2012. The receiver is working to stabilize the property prior to marketing for sale. A recent appraisal indicates significant losses.

The third largest contributor to modeled losses is two adjacent apartment buildings located in the Bronx, NY consisting of 111 units(0.4%). The asset became REO in July 2012. The property was 96% occupied as of October 2012 and the special servicer will be marketing it for sale in 2013. A recent appraisal indicates significant losses.

Fitch has affirmed the following classes:

--$954.9 million class A-4 at 'AAAsf'; Outlook Stable;

--$203.7 million class A-1A at 'AAAsf'; Outlook Stable;

--$168.7 million class AM at 'AAAsf'; Outlook Stable;

--$40.7 million class A-MA at 'AAAsf'; Outlook Stable;

--$111.8 million class AJ at 'BBBsf'; Outlook Stable;

--$27 million class A-JA at 'BBBsf'; Outlook Stable;

--$20.9 million class B at 'BBBsf'; Outlook Stable;

--$20.9 million class C at 'BBsf'; Outlook Stable;

--$20.9 million class D at 'BBsf'; Outlook Negative;

--$18.3 million class E at 'Bsf'; Outlook Negative;

--$18.3 million class F at 'CCCsf'; RE 100%;

--$20.9 million class G at 'CCsf'; RE 10%;

--$23.6 million class H at 'CCsf'; RE 0%;

--$23.6 million class J at 'Csf'; RE 0%;

--$20.9 million class K at 'Csf'; RE 0%.

Classes A-1, A-2, A-3 and A=AB have been paid in full. Classes L through Q have realized losses and remain at 'Dsf'; RE 0%. Class S is not rated by Fitch. Fitch withdrew the ratings of the interest-only classes X-S and X-P.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

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);

---'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland
Director
+1-312-606-2346
Fitch, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland
Director
+1-312-606-2346
Fitch, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com