Fitch Upgrades One Class of UBS 2007-FL1

CHICAGO--()--Fitch Ratings has upgraded one class and affirmed the remaining classes of UBS Commercial Mortgage Trust, series 2007-FL1. The transaction has paid down by approximately 98% since issuance. The remaining loan has been modified and extended but will reach its final maturity date in July 2016. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The upgrade reflects the payoff of the Marriott Washington DC as well as the disposition of the REO land loan with a better than anticipated recovery. Additionally the remaining loan in the pool was modified and returned to the master servicer in May 2015.

The only remaining loan in the pool is secured by the Hilton Long Beach. The property is a 393-room full-service hotel in downtown Long Beach, CA. The loan transferred to the special servicer in June 2012 due to imminent maturity default. The loan reached its final extended maturity in July 2012. The loan was subsequently modified and extended and the previous mezzanine lender acquired ownership of the borrower. The new borrower extended the franchise agreement and is in the process of completing a property improvement plan (PIP) of approximately $11 million. The new final maturity date is July 2016. The loan returned to the master servicer in May 2015.

RATING SENSITIVITIES

The Rating Outlook remains Stable for class K, and no rating changes are expected unless there is a material decline in property performance. Further upgrades are unlikely given the concentrated pool and short remaining loan term. Class L has realized losses and remains at 'D'.

DUE DILIGENCE USAGE

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

Fitch has upgraded the following class:

--$8.2 million class K to 'Asf' from 'Bsf'; Outlook Stable.

Fitch affirms the following class and revises the RE as follows:

--$38.9 million class L at 'Dsf'; RE 90%.

Classes A-1 through J, O-WC, O-BH, O-MD and O-HW have paid in full. Fitch does not rate classes O-SA and O-HA. Classes M-MP, N-MP and O-MP are affirmed at 'D' RE 0% due to realized losses. Fitch previously withdrew the rating of the interest-only class X.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

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

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=991942

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=991942

Endorsement Policy

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

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Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland
Senior Director
+1-312-606-2346
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland
Senior Director
+1-312-606-2346
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com