Fitch Upgrades 4 Classes from CSFB 2003-C5

NEW YORK--(BUSINESS WIRE)--Fitch Ratings upgrades Credit Suisse First Boston (CSFB) commercial mortgage securities 2003-C5 as follows:

--$31.5 million class D to 'AAA' from 'AA-';

--$17.3 million class E to 'AA' from 'A+';

--$17.3 million class F to 'A+' from 'A-';

--$14.2 million class G to 'A-' from 'BBB+'.

In addition, Fitch affirms the following classes:

--$75.7 million class A-3 at 'AAA';

--$370.3 million class A-4 at 'AAA';

--$298.7 million class A-1-A at 'AAA';

--Interest only (IO) class A-X at 'AAA';

--IO class A-SP at 'AAA';

--$39.4 million class B at 'AAA';

--$15.8 million class C at 'AAA';

--$14.2 million class H at 'BBB';

--$9.5 million class J at 'BBB-';

--$6.3 million class K at 'BB+';

--$6.3 million class L at 'BB';

--$7.9 million class M at 'B+';

--$1.6 million class N at 'B';

--$4.7 million class O at 'B-'.

Fitch does not rate the $15.5 million class P. Classes A-1 and A-2 have paid in full.

The upgrades reflect the increased credit enhancement levels due to principal paydown of 16.5% due to loan payoffs and scheduled amortization since Fitch's last rating action. As of the July 2008 distribution date, the pool's aggregate principal balance has decreased 25.9% to $934.2 million from $1.26 billion at issuance. Eighteen loans are defeased, including the second and third largest loans in the transaction (9.6%).

Fitch has identified fourteen loans (13.7%) as Fitch loans of concern due to declining performance. The largest Fitch loan of concern (2.6%), which is in special servicing, is secured by a 438 unit multifamily property located in Houston, TX. The loan was transferred to the special servicer due to monetary default. The special servicer started foreclosure proceeding and the borrower, MBS Cos., filed for bankruptcy. The loan is over 90 days delinquent. The property is currently under contract for sale and has been approved by the bankruptcy court. Minimal losses are expected as the loan is expected to be assumed and returned to the master servicer.

The second largest Fitch loan of concern (1.8%) is secured by a 173 unit multifamily property in Baltimore, MD. The servicer reported Debt Service Coverage Ratio (DSCR) as of year end (YE) 2007 was 0.37 times (X) with occupancy at 95%, compared to DSCR of 1.29x with occupancy at 92% at issuance. The decline in performance is the result of additional capital improvements made by the borrower and increased utility expenses.

Fitch has reviewed the remaining two shadow rated loans: Mall at Fairfield Commons and Paramount Plaza. The Mall at Fairfield Commons loan maintains its investment-grade shadow rating due to stable performance since issuance. The Paramount Plaza loan has defeased.

The Mall at Fairfield Commons loan (7.2%) is secured by 856,879 square foot (sf) of a 1,046,726 sf regional mall in Beavercreek, OH. As of June 30, 2008, the occupancy improved slightly to 96.6% from 95.5% at issuance. The loan is scheduled to mature in November 2014.

Three loans (0.6%) are scheduled to mature in 2008, all of which are secured by multifamily properties. The interest rate on these loans ranges from 5.05% to 7.1% with weighted average coupon at 6.11%. One loan (0.1%) has passed the maturity date but is performing. Fitch is monitoring the status of this loan.

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