Fitch Downgrades 1 Distressed Class of DLJ 1998-CF2

NEW YORK--()--Fitch Ratings has downgraded one distressed class and affirmed one class of DLJ Commercial Mortgage Corporation's commercial mortgage pass-through certificates, series 1998-CF2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The downgrade is due to a realized loss to class B-6 following the liquidation of two specially serviced loans following Fitch's previous rating action. The affirmation is due to the relatively stable performance of the remaining pool.

As of the June 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.3% to $19 million from $1.11 billion at issuance. There are 16 loans remaining in the pool, three of which are defeased (29.8% of the pool), no loans are in special servicing. Fitch has designated one a Fitch Loan of Concern (19.4%).

The largest loan in the pool and Fitch loan of Concern (19.4%), is collateralized by a 224 unit multifamily property located in Savannah, GA. Per the March 2014 rent roll, the property was 87% occupied, down from 90% at year-end 2013. Additionally, the expenses for repairs and maintenance and payroll and benefit expenses have increased.

RATING SENSITIVITY

The Rating Outlook for class B-5 remains negative as the deal is highly concentrated. There are seven loans backed by single tenant retail properties.

Fitch affirms the following class as indicated:

--$16.6 million class B-5 at 'BB+sf', Outlook Negative.

Fitch downgrades the following class as indicated:

--$2.1 million class B-6 to 'Dsf' from 'Csf'; RE 0%.

Classes A-1A through B-4 have been paid in full. Fitch did not rate class C. Fitch previously withdrew the rating on class S.

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=835506

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
Tiffany Pierce, +1-212-908-9107
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
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

Sharing

Contacts

Fitch Ratings
Primary Analyst
Tiffany Pierce, +1-212-908-9107
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
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