Fitch Ratings affirms and assigns Outlooks to Morgan Stanley Capital 1 Trust series 2007-IQ16 commercial mortgage pass-through certificates as follows:
--$48.4 million class A-1 at 'AAA'; Outlook Stable;
--$314.2 million class A-1A at 'AAA'; Outlook Stable;
--$91.1 million class A-2 at 'AAA'; Outlook Stable;
--$83 million class A-3 at 'AAA'; Outlook Stable;
--$1,276.6 million class A-4 at 'AAA'; Outlook Stable;
--$194.7 billion class A-M at 'AAA'; Outlook Stable;
--$20 million class A-MFL at 'AAA'; Outlook Stable;
--$44.9 million class A-MA at 'AAA'; Outlook Stable;
--$131 million class A-J at 'AAA'; Outlook Stable;
--$30 million class A-JFL at 'AAA'; Outlook Stable;
--$33.7 million class A-JA at 'AAA'; Outlook Stable;
--Interest-only class X-1 at 'AAA'; Outlook Stable;
--Interest-only class X-2 at 'AAA'; Outlook Stable;
--$19.5 million class B at 'AA+'; Outlook Stable;
--$26 million class C at 'AA'; Outlook Stable;
--$16.2 million class D at 'AA-'; Outlook Stable;
--$38.9 million class E at 'A+'; Outlook Stable;
--$13.0 million class F at 'A'; Outlook Stable;
--$35.7 million class G at 'A-'; Outlook Stable;
--$26 million class H at 'BBB+'; Outlook Stable;
--$26 million class J at 'BBB'; Outlook Stable;
--$32.4 million class K at 'BBB-'; Outlook Stable;
--$9.7 million class L at 'BB+'; Outlook Stable;
--$9.7 million class M at 'BB'; Outlook Stable;
--$9.7 million class N at 'BB-'; Outlook Stable.
Fitch does not rate the following classes: $16.2 million class 0, $6.5 million class P, $9.7 million class Q and $29.2 million class S.
The affirmations are the result of stable performance and minimal paydown since issuance. Rating Outlooks reflect the likely direction of any rating changes over the next one to two years. As of the September 2008 distribution date, the pool's certificate balance has decreased 0.08% to $2.591 billion from $2.595 billion at issuance. 38 loans (40.4%) are interest-only and there are no near-term maturities.
The largest loan, West Town Mall (8.12% of the pool), is collateralized by a 1.3 million square foot (sf) regional mall located in Knoxville, TN. The servicer-reported debt service coverage ratio (DSCR) and occupancy for year-end (YE) 2007 was 1.38 times (x) and 96.7%, respectively.
The second largest loan, 60 Wall Street (4.82% of the pool), is an office tower located in Manhattan's financial district. The property is 100% leased to Deutsche Bank through 2022. The servicer-reported DSCR for YE2007 was 2.10x.
Easton Town Center (4.24% of the pool), the third largest loan in the pool, and The Ferrell Duncan Building (0.28% of the pool) maintain investment-grade shadow ratings. Easton Town Center is collateralized by a 1.75 million sf regional mall located in Columbus, OH. The servicer-reported DSCR and occupancy for the center were 1.72x and 93.0% at June 30, 2008. The Ferrell Duncan building is a medical clinic in Springfield, MO, that is 99.5% leased to Cox Health Systems. The servicer-reported DSCR was 2.4x as of June 2008.
Fitch identified 4 loans of concern (0.61% of the pool). There were no specially serviced loans.
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