Fitch Affirms DLJCM 1999-CG2

NEW YORK--()--Fitch Ratings has affirmed four classes of DLJ Commercial Mortgage Corp. series 1999-CG2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmation is the result of sufficient credit enhancement and stable performance of the underlying collateral since the last rating action. Fitch modeled losses of 6.6% of the remaining pool; expected losses on the original pool balance total 4.1%, including $62.5 million (4% of the original pool balance) in realized losses to date. Fitch has designated one loan (1.9% of the pool) as a Fitch Loans of Concern. There are no loans in special servicing.

As of the November 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.5% to $23.6 million from $1.55 billion at issuance. Per the servicer reporting, one loan (1.7% of the pool) is defeased. Interest shortfalls are currently affecting classes B-8 through C.

The Fitch Loan of Concern is the Autumn Ridge Apartments loan, secured by a 99-unit multifamily property in Baytown, TX approximately 26 miles west of downtown Houston. The property has suffered from poor performance over the last several years due to low vacancy rates and declining revenue. The servicer reported occupancy was 73% as of the third-quarter 2014 and the DSCR was - 0.08x as of year-end 2013. As per the master servicer, the loan remains current as of the December 2014 remittance.

RATING SENSITIVITIES

The rating on the class B-5 is expected to remain stable; however, a future upgrade may not be warranted due to the increasing concentration risk and potential for adverse selection as performing loans refinance out of the pool. Additionally, there are no maturities until 2018 and there are no expected payoffs within the next two years.

Fitch affirms the following classes and revises REs as indicated:

--$4.6 million class B-5 at 'BBBsf'; Outlook Stable ;

--$18.9 million class B-6 at 'Dsf'; RE 95%;

--$0 class B-7 at 'Dsf'; RE 0% ;

--$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 and B-4 certificates have paid in full. 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. 10, 2014 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 then CMBS then Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2010).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=956535

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Contacts

Fitch Ratings
Primary Analyst
Sean Gibbs
Associate Director
+1 212-908-0311
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart
Senior Director
+1 212-908-0606
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Sean Gibbs
Associate Director
+1 212-908-0311
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart
Senior Director
+1 212-908-0606
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com