Fitch Affirms MSDW 2001-IQ

CHICAGO--()--Fitch Ratings has affirmed two classes of Morgan Stanley Dean Witter Capital I Trust (MSDW) commercial mortgage pass-through certificates series 2001-IQ due to stable performance. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are due to the pool's stable performance, scheduled principal pay down and sufficient credit enhancement to offset modeled losses. There are currently four loans remaining in the pool, all of which are performing and with the master servicer; there are two office, one retail and one industrial property. Upgrades were not warranted due to the lack of financial reporting for the largest loan in the pool.

As of the March 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.9% to $7.5 million from $713 million at issuance. Minimal, if any losses are expected on the remaining pool; there have been $3.7 million (0.5% of the original pool balance) in realized losses to date. Interest shortfalls are currently affecting class O.

The largest loan (58% of the pool) is secured by a 54,714 square foot (sf) office building located in Charlotte, NC. As reported by the master servicer, the borrower has refused to provide financial statements since 2005. A rent roll, however, was received in August 2013 showing 98% occupancy and 45% lease rollover in 2014. Due to the lack of operating information and lease rollover risk, Fitch made conservative estimates of performance.

The second largest loan (20%) is secured by a 29,025 sf office building located in Santa Monica, CA. As of December 2013, the property is 94% occupied, which is a slight decrease from 100% at December 2012. The debt service coverage ratio (DSCR) as of the Dec. 31, 2013 operating statement was at 2.19x. The DSCR for this property has consistently been above 2.0x since issuance.

RATING SENSITIVITY

Future rating changes are unlikely for the remaining life of the pool due to the small number of loans remaining and lack of financial reporting on the largest loan.

Fitch affirms the following classes and revises Rating Outlooks as indicated:

--$4.1 million class M at 'Bsf', Outlook to Stable from Negative;

--$1.8 million class N at 'B-sf', Outlook to Stable from Negative.

The class A-1, A-2, A-3, B, C, D, E, F, G, H, J, K, L, and X-2 certificates have paid in full. Fitch does not rate the class O 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=827130

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
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Alyssa Castelli, +1-212-908-0540 (New York)
alyssa.castelli@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Alyssa Castelli, +1-212-908-0540 (New York)
alyssa.castelli@fitchratings.com