Fitch Upgrades Six Classes of CSFB 2003-C5

CHICAGO--()--Fitch Ratings has upgraded six classes and affirmed five classes of Credit Suisse First Boston Mortgage Securities Corp., commercial mortgage pass-through certificates, series 2003-C5. A detailed list of rating actions follows at the end of this press release.

KEY RATINGS DRIVERS

The upgrades reflect increased credit enhancement and a decrease in Fitch-modeled losses since the last rating action. Approximately $450 million in paydown, mostly from maturing loans, has occurred since the last rating action. Fitch modeled losses of 6.3% of the remaining pool; expected losses on the original pool balance total 3.1% including $32 million (2.5% of the original pool balance) in realized losses to date. Fitch has designated three loans (11.5%) as Fitch Loans of Concern. There are two specially serviced loans (10.6%) in the remaining pool.

As of the April 2014 distribution date, the pool's aggregate balance has been reduced by 91.8% to $104 million from $1.26 billion at issuance. Interest shortfalls are currently affecting classes P through K and total $4.6 million. There are no defeased loans. Remaining loan maturities are concentrated in 2014 and 2017 comprising of 79.5% and 15.7% of the pool balance, respectively.

The largest loan in the pool, Mall at Fairfield Commons (67.7% of the pool), is secured by a 1.1 million square foot (sf) regional mall located in Beavercreek, OH, a suburb in the Dayton metropolitan statistical area (MSA). The loan is collateralized by 856,879 square feet (sf) of the mall and includes anchors Sears, JC Penney, and Macy's. The non-collateral anchor is Elder-Beerman. As of March 2013, the servicer reported occupancy for the collateral space was 97%, which is an improvement from a low of 87% in 2010. Although the servicer reported debt service coverage ratio as of year-end 2012 declined to 1.5x from over 2.0x in previous years, performance is expected to be stable to improving with the increase in occupancy. The sponsor of the loan is Glimcher Properties. The mall is scheduled to mature November 2014.

The largest contributor to modeled losses is the specially serviced loan, Waynesburg Centre, a 44,688 sf retail center located 11 miles southeast of Canton, Ohio. The property currently lists five suites comprising of 62% of the net rentable area (NRA) as vacant. A receiver has been appointed and the special servicer continues to evaluate options before pursuing a resolution.

The second largest contributor to modeled losses is Salem Terrace Apartments (0.9%), a 70 unit apartment complex located in Covington, Georgia. The complex has underperformed for several years but has recently experienced positive leasing trends. Occupancy climbed to 90% in 2013 from a previous low of 70%. The servicer continues to monitor the property's performance.

RATINGS SENSITIVITY

The Stable Rating Outlooks on classes D through H reflect increasing credit enhancement and the anticipated further principal paydown of the pool balance through year-end. Further upgrades of the lower classes will be limited due to adverse selection of the remaining collateral and asset concentration.

Fitch has upgraded the following classes:

--$21 million class D to 'AAAsf' from 'AAsf'; Outlook Stable;

--$17.3 million class E to 'AAAsf' from 'Asf'; Outlook Stable;

--$17.3 million class F to 'BBBsf' from 'BBsf'; Outlook to Stable from Negative;

--$14.2 million class G to 'BBsf' from 'B-sf'; Outlook to Stable from Negative;

--$14.2 million class H to 'Bsf' from 'CCCsf'; Outlook Stable assigned;

--$9.5 million class J to 'CCCsf' from 'CCsf'; RE100%.

In addition, Fitch affirms the following classes:

--$6.3 million class K at 'CCsf'; RE80%;

--$4.2 million class L at 'Dsf'; RE0%;

--$0 million class M at 'Dsf'; RE0%;

--$0 million class N at 'Dsf'; RE0%;

--$0 million class O at 'Dsf'; RE0%.

Classes A-1, A-2, A-3, A-4, A-1-A, B, and C have paid in full. Fitch does not rate the class P. Classes A-SP and A-X are previously withdrawn.

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=830196

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
Jay Bullie, +1 312-368-2079
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson, +1 312-606-2341
Senior 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
Jay Bullie, +1 312-368-2079
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson, +1 312-606-2341
Senior Director
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com