Fitch Affirms Morgan Stanley Capital I Trust 2005-TOP 19

NEW YORK--()--Fitch Ratings has affirmed 16 classes of Morgan Stanley Capital I Trust series 2005-TOP19 (MSCI 2005-TOP19) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect stable to improved performance of the remaining pool. Fitch modeled losses of 5.7% of the remaining pool; expected losses on the original pool balance total 4.9%, including $7.2 million (0.6% of the original pool balance) in realized losses to date. Fitch has designated 29 loans (24%) as Fitch Loans of Concern, which includes two specially serviced assets (0.9%).

As of the March 2014 distribution date, the pool's aggregate principal balance has been reduced by 24.4% to $929.1 million from $1.23 billion at issuance. Per the servicer reporting, 13 loans (10% of the pool) are defeased. Interest shortfalls are currently affecting class O and the non-rated class P.

The largest contributor to expected losses is a 466,000 square foot (sf) office building (9.1% of the pool) located in the Buckhead area of Atlanta, GA. Although it remains the largest contributor to loss since the previous rating action, occupancy has continued to improve over the past three years, at a reported 82% as of year-end (YE) 2013 compared to 73% at YE 2010 and loss expectations are lower. Fitch will continue to monitor the trend in occupancy, as approximately 12% of the net rentable area (NRA) is rolling over the next 12 months per the Dec. 31, 2013 rent roll. Debt service coverage ratio (DSCR) was a reported 2.29x at YE 2013.

The next largest contributor to expected losses (1.6% of the pool) is a 44,215 sf office property located in Port St. Lucie, FL. The asset became real estate owned as of February 2014, with a servicer reported occupancy of 58.3% and a DSCR of 0.72x as of YE 2013. The resolution strategy is still being determined.

RATING SENSITIVITY

The Rating Outlooks on classes A-A4 through A-J remain Stable, and the Rating Outlooks on classes B through D were revised to Stable from Negative due to lowered expected losses and increased credit enhancement. Downgrades to the distressed classes (below 'B') are likely as additional losses are realized.

Fitch affirms the following classes as indicated:

--$639.4 million class A-4A at 'AAAsf'; Outlook Stable;

--$88.1 million class A-4B at 'AAAsf'; Outlook Stable;

--$87.5 million class A-J at 'Asf'; Outlook Stable;

--$23 million class B at 'BBB-sf'; Outlook revised to Stable from Outlook Negative;

--$12.3 million class C at 'BBsf'; Outlook revised to Stable from Outlook Negative;

--$15.4 million class D at 'Bsf'; Outlook revised to Stable from Outlook Negative;

--$12.3 million class E at 'CCCsf'; RE 100%;

--$9.2 million class F at 'CCCsf'; RE 90%;

--$9.2 million class G at 'CCCsf', RE 0%;

--$10.7 million class H at 'CCCsf', RE 0%;

--$3.1 million class J at 'CCsf', RE 0%;

--$3.1 million class K at 'CCsf', RE 0%;

--$6.1 million class L at 'CCsf', RE 0%;

--$1.5 million class M at 'Csf', RE 0%;

--$3.1 million class N at 'Csf', RE 0%;

--$3.1 million class O at 'Csf', RE 0%.

The class A-1, A-2, A-3 and A-AB certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 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=824508

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Contacts

Fitch Ratings
Primary Analyst
Tiffany Pierce, +1-212-908-9107
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Tiffany Pierce, +1-212-908-9107
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com