CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 17 classes of Morgan Stanley Capital I Trust (MSCI), series 2008-TOP29. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
Stable Performance: The affirmations reflect the relative stable performance of the pool since Fitch's last rating action and modeled losses remain in line with previous expectations. There is one loan in special servicing (2% of the pool). The pool's aggregate principal balance has been reduced by approximately 27.9% (including 0.9% in realized losses) to $889.65 million from $1.23 billion at issuance. Interest shortfalls are affecting the non-rated class P as of November 2016.
High Retail Concentration: Of the 69 loans remaining, 41 are backed by retail properties (52.7% of the pool) including five of the top 10 loans (25.5%). Three loans in the top 20 (6.7%) are secured by Puerto Rico retail properties. Additionally, there are three mixed-use properties with a retail component (3.3%).
Defeasance: Five loans are defeased (17.6%) as of the November 2016 distribution date, including the largest loan, Kimco Portfolio (12.3%).
Limited Amortization: Remaining scheduled amortization for the pool is 1.6% from the November 2016 to each loan's scheduled maturity date or ARD. Of the remaining pool, approximately 81% is partial or full-term interest-only which limits deleveraging of the senior and mezzanine classes.
The Outlooks for classes A-4 through E are expected to remain Stable unless additional loans transfer to special servicing coupled with an increase in expected losses. Fitch performed rating sensitivities, including modeling substantial losses on the specially serviced loan and paydown from large loans, and the current ratings would be affirmed. Downgrades to the subordinate and distressed classes are possible should pool performance deteriorate.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third party due diligence was provided or reviewed in relation to this rating.
Fitch has affirmed the following ratings:
--$507.6 million class A-4 at 'AAAsf'; Outlook Stable;
--$60.5 million class A-4FL at 'AAAsf'; Outlook Stable;
--$123.4 million class A-M at 'AAAsf'; Outlook Stable;
--$72.5 million class A-J1 at 'AAsf'; Outlook Stable;
--$20.1 million class B at 'Asf'; Outlook Stable;
--$10.8 million class C at 'BBBsf'; Outlook Stable;
--$21.6 million class D at 'BBsf'; Outlook Stable;
--$12.3 million class E at 'Bsf'; Outlook Stable;
--$13.9 million class F at 'CCCsf'; RE 100%;
--$13.9 million class G at 'CCCsf'; RE 65%;
--$10.8 million class H at 'CCCsf'; RE 0%;
--$1.5 million class J at 'CCsf'; RE 0%;
--$4.6 million class K at 'CCsf'; RE 0%;
--$1.5 million class L at 'Csf'; RE 0%;
--$1.5 million class M at 'Csf'; RE 0%;
--$4.6 million class N at 'Csf'; RE 0%;
--$4.6 million class O at 'Csf'; RE 0%.
Fitch does not rate class P, which has been reduced to $3.8 million from $15.2 million due to realized losses. Classes A-1, A-2, A-3 and A-AB are paid in full. Fitch previously withdrew the rating on the interest-only class X.
Additional information is available at 'www.fitchratings.com'.
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