Fitch Upgrades 2 Classes of CSFB 1997-C2

NEW YORK--()--Fitch Ratings has upgraded two and affirmed two classes of Credit Suisse First Boston Mortgage Securities Corp., commercial mortgage pass-through certificates, series 1997-C2 (CSFB 1997-C2). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades and affirmations are the result of increasing credit enhancement and continued paydown. The pool is concentrated with only 38 of the original 185 loans remaining. Of the remaining collateral pool, 28 loans (58%) are secured by Credit Tenant Leases (CTL). The overall pool performance has been stable since Fitch's last rating action.

As of the March 2014 distribution date, the pool's aggregate principal balance has been reduced by 96.1% to $56.5 million from $1.47 billion at issuance. Per the servicer reporting, eight loans (32.1% of the pool) are defeased, which includes the largest remaining loan (20.8% of the pool). Interest shortfalls are currently affecting classes I through J. Fitch has designated nine loans (24.4%) as Fitch Loans of Concern, which includes two specially serviced assets (13.4%).

The largest contributor to expected losses is a 142-unit multifamily property located in Tulsa, OK. The loan was transferred to the special servicer in April 2011 and foreclosure was completed in October 2013. As of March 2014 the property was 82% occupied, an improvement from the foreclosure date which reported occupancy of 72%. The disposition strategy for the property is still being assessed at this time.

RATING SENSITIVITY

The ratings on classes F, G, and H are expected to remain stable given the high credit enhancement resulting from continued paydown and defeasance but there are continuing concerns given the increasing concentrations in the pool and the greater risk of adverse selection. Class I will remain at 'Dsf' as losses have been realized.

Fitch upgrades the following classes as indicated:

--$5 million class F to 'AAAsf' from 'AA+sf', Outlook Stable;

--$14.7 million class G to 'AAsf' from 'A+sf', Outlook Stable.

Fitch affirms the following classes as indicated:

--$29.3 million class H at 'B+sf', Outlook Stable;

--$7.5 million class I at 'Dsf', RE 65%.

The class A-1, A-2, A-3, B, C and D certificates have paid in full. Fitch does not rate the class E and J certificates. Fitch previously withdrew the rating on the interest-only class A-X 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:

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

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

Global Structured Finance Rating Criteria

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=827675

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
Dustin Pike, +1 212-612-7875
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, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Dustin Pike, +1 212-612-7875
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, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com