Fitch: Proposed Sale of Capmark Svcg Rights to Berkadia Would Not Affect Rtgs of Various CDOs.

NEW YORK -- In Fitch Ratings view, the sale and transfer of Capmark Finance Inc.'s (Capmark) servicing rights to Berkadia Commercial Mortgage LLC (Berkadia) would not adversely impact Fitch's ratings of the liabilities of the collateralized debt obligations (CDOs) listed below:

--Capmark VII-CRE, Ltd./Corp.;

--Marathon Real Estate CDO 2006-1, Ltd./LLC;

--Newcastle CDO VIII 1, Limited and Newcastle CDO VIII 2, Limited/Newcastle CDO VIII LLC;

--Newcastle CDO IX 1, Limited/Newcastle CDO IX LLC.

Currently, most if not all, classes from these transactions are on Rating Watch Negative pending further review. These classes were placed on Negative Watch due to the performance of the underlying collateral and not the sale and transfer of the servicing rights. Please refer to Fitch's web site at 'www.fitchratings.com' for current ratings and surveillance information.

Capmark fills various servicing capacities pursuant to the CDO Servicing Agreements.

On Sept. 2, 2009 Capmark Financial Group and Capmark Capital entered into an Asset Put Agreement with Berkadia. The put agreement is an intention to sell Capmark Servicing in its entirety to Berkadia. Berkadia is a newly formed entity owned by Berkshire Hathaway Inc. and Leucadia National Corp.

Berkshire Hathaway has a long-term Issuer Default Rating (IDR) of 'AA+', with a Negative Outlook from Fitch. Leucadia National Corporation has a long-term IDR of 'BB+', with a Negative Outlook. Currently, Capmark Financial Group is rated 'C' by Fitch. The acquisition will bring financial stability to the servicing platform. In addition, Berkadia will be capitalized with in excess of $1 billion in available cash by Berkshire Hathaway. Berkadia is purchasing the entire company with plans to retain substantially all staff and ultimately grow the business.

Fitch's current criteria (Rating Methodology for U.S. Revolving Commercial Real Estate Loan CDOs, dated Dec. 20, 2007, available on Fitch's web site at 'www.fitchratings.com') state that when assessing CREL CDO collateral managers, Fitch employs the framework outlined in its criteria for rating CDO Asset Managers. However, given the specialized requirements of direct real estate lending and real estate portfolio management, the review process for rating CDO managers has been expanded to address specific qualifications expected to effectively manage CREL CDOs, including servicing capabilities. In cases where the manager is a rated CMBS servicer or the organization outsources its servicing to a Fitch-rated servicer, Fitch will look to such ratings as authoritative indications of the commercial mortgage servicing capabilities of the organization.

Berkadia intends to hire substantially all of the current employees of Capmark, has no plans to change management or the business plan, and provides financial stability to the servicing platform. Capmark currently carries the following ratings:

--CMBS Primary Servicer Rating: 'CPS2-'; Rating Watch Evolving;

--CMBS Master Servicer Rating: 'CMS3-'; Rating Watch Evolving;

--CMBS Special Servicer Rating: 'CSS2-'; Rating Watch Evolving.

Fitch is not a party to the transaction and therefore does not provide consent or approval, as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee when or if the sale and transfer are executed.

Additional information is available at 'www.fitchratings.com'.

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