Fitch Affirms DLJ 1999-CG1

NEW YORK--()--Fitch Ratings has affirmed DLJ Commercial Mortgage Corp., commercial mortgage pass-through certificates series 1999-CG1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmation of class B-6 reflects the collateral quality of the remaining pool. There are two remaining loans in the pool. Although both loans currently exhibit stable performance, any change in the performance of either loan may have a significant impact on the bond's credit enhancement. The affirmations of class B-7 and B-8 reflect losses already realized.

As of the May 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.7% to $16.7 million from $1.24 billion at issuance. Interest shortfalls are currently affecting classes B-7 through C.

The largest loan, The Links at Bixby (50.6%) is secured by a garden style multifamily property consisting of 324 units located in Bixby, OK. As of March 2014, the property is 100% occupied with average asking rent ranging from $525-$670 per unit. As per REIS as of first quarter 2014, the Tulsa South multifamily submarket asking rent is $643 with 5% vacancy. The year-end (YE) 2013 debt service coverage ratio (DSCR) is 1.26x up from 1.20x YE 2012. The loan matures in March 2023.

The second loan, The Shoppes at Longwood (49.4%), is secured by a 141,940 square foot (sf) retail property located in Kennett Square, PA. The largest tenants include Super Fresh (31%), lease expiration Aug. 31, 2017; T.J. Maxx (17%), expiration Jan. 31, 2019; and Staples (13%), expiration Nov. 30, 2017. As of March 2014, the property is 100% occupied with minimal rollover until 2017 when 57% of the space rolls (two of the top three tenants). The YE 2013 DSCR remains stable at 1.79x. The loan matures in January 2019.

RATING SENSITIVITY

The rating on class B-6 is expected to remain stable given the concentration of each of the remaining loans. Classes B-7 and B-8 will remain at 'Dsf' as losses have been realized.

Fitch has affirmed the ratings and revised the recovery estimates (REs) of the following classes:

--$8.6 million class B-6 at 'Bsf', Outlook Stable;

--$8.1 million class B-7 at 'Dsf', RE 80%;

--$0 class B-8 at 'Dsf', RE 0%.

The class A-1A, A-1B, A-2, A-3, A-4, B-1, B-2, B-3, B-4 and B-5 certificates have paid in full. Fitch does not rate the class C certificates. Fitch previously withdrew the rating on the interest-only class S 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 20, 2014);

--'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=748821

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=831378

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Contacts

Fitch Ratings
Primary Analyst
Lisa Cook
Director
+1-212-908-0665
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Lisa Cook
Director
+1-212-908-0665
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com