Fitch Upgrades 3 Classes of Morgan Stanley Dean Witter Capital I Trust Series 2000-LIFE2

NEW YORK--()--Fitch Ratings has upgraded three and affirmed four classes of Morgan Stanley Dean Witter Capital I Trust's (MSDW) commercial mortgage pass-through certificates, series 2000-LIFE2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades to the selected classes reflect the quality and anticipated pay-off of the one remaining loan in the pool. The pool has experienced $17.9 million (2.3% of the original pool balance) in realized losses to date. As of the April 2014 distribution date, the pool's aggregate principal balance has been reduced by 97.5% to $18.8 million from $765.3 million at issuance. Interest shortfalls are currently affecting classes L through P.

The remaining loan is secured by a 165,335 square foot (sf) office building located in Manhattan, New York, NY on 7th Avenue between 53rd & 54th Street. Per the December 2013 rent roll, the property is 100% occupied by one tenant, Young & Rubicam. Young & Rubicam expanded into the former International Merchandising Corp. space (19% net rentable area [NRA]) in December 2013; in connection with the tenant's expansion, the effective rent for this portion of space has increased to $66 per square foot (psf) from $37.36 psf. Young & Rubicam's lease expires in April 2015, approximately six months after the loan's October 2014 maturity. Recently however, the master servicer indicated the borrower intends to pay off the loan prior to its maturity. The net operating income (NOI) debt service coverage ratio (DSCR) remains stable at 3.36x as of year-end 2013.

RATING SENSITIVITY

The ratings for investment grade classes H, J, and K are expected to remain stable. Exposure from upcoming loan maturity and single-tenant binary risk is mitigated by stable historical loan performance with a low loan-to-value (LTV) and pending loan pay-off.

Fitch upgrades the following classes as indicated:

--$4.2 million class H to 'AAAsf' from 'Asf', Outlook Stable;

--$9.2 million class J to 'AAAsf' from 'Asf', Outlook Stable;

--$3.1 million class K to 'AAAsf' from 'Asf', Outlook Stable.

Fitch affirms the following classes as indicated:

--$2.3 million class L at 'Dsf', RE 100%;

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

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

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

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

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

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
Martin Nunnally
Associate Director
+1 212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Britt Johnson
Senior Director
+1 312-606-2341
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Martin Nunnally
Associate Director
+1 212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Britt Johnson
Senior Director
+1 312-606-2341
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com