Fitch Affirms MSCI 2007-TOP25

NEW YORK--()--Fitch Ratings has affirmed 17 classes of Morgan Stanley Capital I Trust 2007-TOP25 (MSCI 2007-TOP25) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch modeled losses of 8.7% of the remaining pool; expected losses on the original pool balance total 12.4%, including $88.8 million (5.7% of the original pool balance) in realized losses to date. Fitch has designated 50 loans (32.3%) as Fitch Loans of Concern, which includes six specially serviced assets (2.8%). Approximately 42% of the pool consists of loans secured by retail properties.

As of the June 2015 distribution date, the pool's aggregate principal balance has been reduced by 22.4% to $1.21 billion from $1.55 billion at issuance. Per the servicer reporting, 13 loans (8.4% of the pool) are defeased. Interest shortfalls are currently affecting classes D through P.

The largest contributor to expected losses is the Shoppes at Park Place loan (5.9% of the pool), which is secured by a 325,000 sf retail center located in Pinellas Park, FL. As of the December 2014 rent roll, the property was 100% occupied. However, nearly half of the total property square footage has lease expirations prior to the loan's maturity in January 2017. Further, the average current rent at the property is above market levels.

The next largest contributor to expected losses is the One Thomas Circle loan (4.6%), which is secured by a 229,659-sf office building in the East End submarket of Washington, D.C. As of the March 2015 rent roll, the property was only 69.6% occupied (compared with 91.4% March 2014) after losing its third largest tenant at lease expiration in September 2014. Approximately 18% of the tenancy rolls over the next year. The servicer reported a YE 2014 DSCR of 0.99x.

RATING SENSITIVITIES

Rating Outlooks on classes A-1A and A-3 remain Stable due to increasing credit enhancement and continued pay down. The Rating Outlook on class AM remains Negative due to the possibility of further negative credit migration of the underlying collateral. The distressed classes are subject to further downgrade as losses are realized.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following classes:

--$114.3 million class A-1A at 'AAAsf'; Outlook Stable;

--$761.3 million class A-3 at 'AAAsf'; Outlook Stable;

--$155.5 million class A-M at 'Asf'; Outlook Negative;

--$110.8 million class A-J at 'CCCsf'; RE 75%;

--$27.2 million class B at 'CCsf'; RE 0%;

--$11.7 million class C at 'CCsf'; RE 0%;

--$25.3 million class D at 'Csf'; RE 0%;

--$672,856 class E at 'Dsf'; RE 0%;

--$0 class F at 'Dsf'; RE 0%;

--$0 class G at 'Dsf'; RE 0%;

--$0 class H at 'Dsf'; RE 0%;

--$0 class J at 'Dsf'; RE 0%;

--$0 class K at 'Dsf'; RE 0%;

--$0 class L at 'Dsf'; RE 0%;

--$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 and A-AB 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 is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=987843

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=987843

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Stacey McGovern, +1-212-908-0722
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Karen Trebach, +1-212-908-0215
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Stacey McGovern, +1-212-908-0722
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Karen Trebach, +1-212-908-0215
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com