Fitch Affirms Ratings for DLJ Series 1999-CG2

NEW YORK--()--Fitch Ratings has affirmed four classes of DLJ Commercial Mortgage Corp., series 1999-CG2. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are the result of sufficient credit enhancement due to significant paydown which offsets the pool's increased concentrations. Fitch modeled losses of 9.4% of the remaining pool; expected losses on the original pool balance total 4.2%, including $61.9 million (4% of the original pool balance) in realized losses to date. Fitch has designated seven loans (22.3%) as Fitch Loans of Concern, which includes one specially serviced asset (5.1%).

As of the December 2013 distribution date, the pool's aggregate principal balance has been reduced by 98.1% to $30.3 million from $1.6 billion at issuance. Nineteen of the original 343 loans remain. Five loans (85.1%) have anticipated repayment dates, with final maturity dates ranging from 2023 through 2028 and fourteen loans (14.9%) have maturity dates between 2014 and 2024. One loan (1.5%) is currently defeased. Interest shortfalls are currently affecting classes B-6 through C.

The largest contributor to Fitch's modeled losses is an 84 unit multifamily property (5.1%) located in Columbus, OH. The loan transferred to the special servicer due to imminent monetary default. Occupancy at the property decreased to 71%, as of December 2013, from 89%, as of June 2012. There are several deferred maintenance issues at the property which are currently being addressed.

RATING SENSITIVITIES

The rating on the class B-5 notes is expected to remain stable. The rating on the class B-6 notes may be subject to further downgrades as losses are realized.

Fitch has affirmed the following classes as indicated:

--$10.8 million class B-5 at 'BBBsf'; Outlook Stable;

--$19.4 million class B-6 at 'Csf'; RE 85%;

--$88,262 class B-7 at 'Dsf'; RE 0%.

Class B-8 remains at 'Dsf'; RE 0% and has been reduced to zero due to realized losses. Class C, which is not rated by Fitch has been reduced to zero from $31 million at issuance due to realized losses.

The class A-1A, A-1B, A-2, A-3, A-4, B-1, B-2, B-3, and B-4 notes have paid in full. Fitch previously withdrew the rating on the interest-only class S certificates.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=814853

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Matthew McGowan, +1-212-908-0733
Analyst
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Britt Johnson, +1-312-606-2341
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Matthew McGowan, +1-212-908-0733
Analyst
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Britt Johnson, +1-312-606-2341
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com