Fitch Ratings has downgraded two classes, lowered the Distressed Recovery Rating on one class and affirmed 13 classes of Credit Suisse First Boston (CSFB) Mortgage Securities Corp.'s commercial mortgage pass-through certificates, series 2001-CK3 as follows:
--$12.7 million class L downgraded to 'B' from 'B+';
--$9.9 million class M downgraded to 'CC/DR3' from 'CCC/DR1'.
The following classes are affirmed:
--$66.0 million class A-3 at 'AAA';
--$582.4 million class A-4 at 'AAA';
--Interest-only class A-X at 'AAA';
--$42.3 million class B at 'AAA';
--$56.3 million class C at 'AAA';
--$11.3 million class D at 'AAA';
--$14.1 million class E at 'AAA';
--$25.4 million class F at 'AA+';
--$8.0 million class G-1 at 'A+';
--$11.7 million class G-2 at 'A+';
--$14.1 million class H at 'A-';
--$24.8 million class J at 'BBB-';
--$9.0 million class K at 'BB'.
Fitch does not rate the $21,000 class N or zero balance class O certificates. Classes A-1 and A-2 have paid in full.
The downgrade to class M is due to the Fitch projected losses on the specially serviced loan. In November 2007 one loan transferred to special servicing due to nonpayment default. MBS Cos. is the current borrower and the loan is a 128-unit multifamily property in Houston, TX (0.4%) that reported December 2007 occupancy of 19%.
As of the December 2007 distribution date, the transaction has been reduced by 21% since issuance, to $887.9 million from $1.13 billion. In addition, 34 loans, 37.8% of the pool, have defeased.
At issuance two loans were considered to have investment grade shadow ratings. The 888 Seventh Avenue loan has paid in full.
The Atrium Mall is a 215,000 square foot retail center located in Chestnut Hill, MA. Occupancy as of June 2007 was 93.6% compared to 92% at issuance. The loan maintains its investment grade shadow rating.
Fitch's Distressed Recovery (DR) ratings are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money.
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