Fitch Upgrades 1 Class from DLJ Commercial Mortgage Corp. Series 1998-CG1

NEW YORK--(BUSINESS WIRE)--Fitch upgrades DLJ Commercial Mortgage Corp.'s commercial mortgage pass-through certificates, series 1998-CG1:

--$66.5 million class B-4 upgraded to 'AAA' from 'AA';

Fitch also affirms the following classes:

Interest-only class S at 'AAA'.

--$35.0 million class B-1 at 'AAA';

--$23.5 million class B-2 at 'AAA';

--$15.6 million class B-3 at 'AAA';

--$15.6 million class B-5 at 'A+';

--$27.4 million class B-6 at 'BBB-';

--$15.6 million class B-7 at 'B-'.

Fitch does not rate the $13.8 million class C certificates. Classes A-1A, A-1B, A-1C, A-2, A-3, and A-4 are paid in full.

The upgrade is the result of increased credit enhancement due to payoff of additional four loans, partial prepayments and scheduled amortization since Fitch's last rating action.

As of the July 2008 distribution date, the pool's aggregate certificate balance has decreased 86.4% since issuance, to $213.0 million from $1.56 billion. Eight loans (34.6%) have defeased, including a shadow rated loan (11%) and two other top five loans (14%).

Four assets (5.1%) are currently in special servicing. The largest asset (1.9%) is secured by a retail shopping center located in Crowley, LA which matured on April 1, 2008. The borrower secured financing but could not close due to an issue with the ground lessor. The master servicer approved a 90 day extension to allow the borrower to resolve the issue. The property is 97% occupied and had a servicer reported year-end (YE) 2007 DSCR of 1.62x. The special servicer is in the process of preparing a forbearance agreement.

The second largest specially serviced loan (1.8%) is secured by a 160 room unflagged two-story exterior corridor hotel located in Tallahassee, FL. The property was transferred to special servicing as a result of declining performance and monetary default. As of year-end (YE) 2007, the property was 42% occupied and had a servicer reported DSCR of 0.38x.

The third specially serviced asset (0.8%) is secured by a two-story office building located in Endicott, NY and is currently 90 days delinquent. The property is located in the vicinity of the IBM ground water plume in Endicott, NY and occupancy continues to struggle. The property is currently 35% occupied.

The fourth specially serviced asset (0.5%) is secured by a retail property located in Jackson, MS and is currently real estate owned (REO). The special servicer continues to market the property and the vacant space. The property is currently 33% occupied.

Expected losses on the specially serviced assets are anticipated to be absorbed by the non-rated class C.

Four non-defeased loans (4.2%) mature in 2008. The loans have a weighted average coupon of 7.18%. Of the four loans, three (3.27%) are specially serviced.

Three loans (5.6%) have ARD dates in 2008. The loans have a weighted average coupon of 7.18%.

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