Fitch Affirms N-45o First CMBS Issuer Corporation, Series 2003-1

CHICAGO--(BUSINESS WIRE)--Fitch Ratings affirms the ratings on N-45o First CMBS Issuer Corporation, series 2003-1. A detail list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are due to sufficient credit enhancement in light of the pool's stable performance and significant concentration with only five of the original 63 loans remaining, all but one of which matures in the next 12 months. As of the January 2012 distribution date, the pool's certificate balance has paid down 85% to $85.8 million from $559.7 million at issuance. One of the remaining loans (9.9%) is defeased, with a maturity date of March 2013. There are no specially serviced or delinquent loans as of the January 2013 remittance report. All loans have a debt service coverage ratio (DSCR) above 1.25 times (x). The weighted average loan to value (LTV) for the remaining loans is 67.2%. There are currently no interest shortfalls or losses to any classes of this transaction.

The largest loan in the pool, State Street Financial Centre (61.2% of the pool), is secured by a 413,937 square foot (sf) office building located in the financial district of Toronto, Ontario. The A class building located on the eastern edge of the financial core has numerous on-site and near-by amenities. A lease to International Financial Data Services Inc. (representing 33% of NRA) expires in October 2013. However, the tenant has a renewal option and the high likelihood of renewal due to the tight market supply was considered. According to CBRE, Class A office properties in Toronto have a vacancy rate of 5.4%. The loan matures September 2013.

The second largest loan in the pool, Zellers Centre (13.8%), is the former industrial warehouse facility for Zellers stores; the property is currently vacant. The loan matures February 2014. A deterministic test was performed and any loss incurred on this loan would not impact the ratings.

Fitch has affirmed the following classes and Outlooks as indicated:

--$4.6 million class A-2 at 'AAAsf'; Outlook Stable;

--$8.4 million class B at 'AAAsf'; Outlook Stable;

--$16.8 million class C at 'AAAsf'; Outlook Stable;

--19.6 million class D at 'Asf'; Outlook Stable;

--$14 million class E at 'BBB-sf'; Outlook Stable;

--$9.1 million class F at 'B+sf'; Outlook Stable.

Fitch does not rate the $13.3 million class G.

Class IO was previously withdrawn and class A-1 is paid in full.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);

--'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

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

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