Fitch Affirms MSDWCI 2001-Top3

CHICAGO--()--Fitch Ratings has affirmed 10 classes of Morgan Stanley Dean Witter Capital I Trust (MSDWCI 2001-Top3) commercial mortgage pass-through certificates series 2001-Top3. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch modeled losses of 17.3% of the remaining pool; expected losses on the original pool balance total 6%, including $50.8 million (4.9% of the original pool balance) in realized losses to date. Fitch has designated five loans (30.6%) as Fitch Loans of Concern, which includes two specially serviced assets (24.8%).

As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 94% to $62.1 million from $1.03 billion at issuance. Per the servicer reporting, three loans (4.7% of the pool) are defeased. Interest shortfalls are currently affecting classes F through N.

The largest contributor to expected losses is a specially-serviced 80,209sf office property (12.6% of the pool) located in North Wales, PA. The property has been losing tenants with further rollover expected to take place this year. The Special Servicer is moving forward with the appointment of a Receiver while monitoring the resolution of title related issues. Attempts to sell the note have been unsuccessful.

The next largest contributor to expected losses is a specially-serviced 98,973sf industrial property (12.3%) located in Fremont, CA. Occupancy at the property declined from 100% to 50% in 2011 when a major tenant vacated at the end of its lease term. The largest remaining tenant, representing 27% of the net rentable area (NRA), is on a month-to- month lease. Due to the decline in occupancy, the cash flow has been insufficient to service the debt with servicer reported debt service coverage ratio (DSCR) as of March 2013 at 0.13x. There is a receiver in-place and the servicer is pursuing foreclosure.

The third largest contributor to expected losses is a 19,813 suburban office building (1.3%) located in Tustin, CA. Loan payments have remained current, but the property reported occupancy of 42% as of December 2013. The borrower continues efforts to lease the vacancies.

RATING SENSITIVITY

Rating Outlooks on classes C and D remain Stable due to increasing credit enhancement and continued paydown. Rating Outlooks on class E is Negative due to the pool concentration.

Fitch affirms the following classes:

--$17.8 million class C at 'AAsf', Outlook Stable;

--$12.9 million class D at 'Asf', Outlook Stable;

--$18 million class E at 'BBsf', Outlook Negative;

--$11.6 million class F at 'CCsf', RE 30%;

--$1.9 million class G at 'Dsf', RE 0%;

--$0 class H at 'Dsf', RE 0%;

--$0 class J at 'Dsf', RE 0%;

--$0 class K at 'Dsf', RE 0%;

--$0 class L at 'Dsf', RE 0%;

--$0 class M at 'Dsf', RE 0%.

Classes A-1, A-2, A-3, A-4, B and X-2 have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 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'.

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=820556

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

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Contacts

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