Fitch Places 10 Classes of MSCI 2007-HQ12 on Rating Watch Negative

Fitch Ratings has placed 10 classes of Morgan Stanley Capital Trust I, series 2007-HQ12, commercial mortgage pass-through certificates on Rating Watch Negative as follows:

--$170.9 million class A-M 'BBB-sf';

--$25 million class A-MFL 'BBB-sf';

--$53 million class A-J 'B-sf';

--$91.4 million class A-JFL 'B-sf';

--$41.6 million class B 'B-sf';

--$22 million class C 'B-sf';

--$24.5 million class D 'B-sf';

--$14.7 million class E 'B-sf';

--$24.5 million class F 'B-sf';

--$22 million class G 'B-sf'.

The classes have been placed on Rating Watch Negative due to an expectation for increased losses following updated valuations on several specially serviced loans.

The largest specially serviced loan is the Beacon Seattle and DC Portfolio (7% of the pool). The pari passu loan transferred to special servicing in April 2010 for imminent default; however, the loan is currently performing under a modification agreement which included a maturity extension to 2017 and incentives for the borrower to sell the underlying properties to pay down the debt. The loan has paid down 30% from the sale of six of the original 20 properties.

Fitch expects to resolve the Rating Watch status within the next several months following a complete review of the transaction including updated performance data for performing loans. Following its review, the classes placed on Rating Watch Negative may be downgraded several categories.

Additional information on Fitch's criteria is available in the Dec. 21, 2011 report, 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance then CMBS then Criteria Reports

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' Dec. 21, 2011

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