Fitch Downgrades $25.7MM & Affs $392MM from 4 CBA Comm'l Asset Small Balance CMBS Deals.

NEW YORK -- Following a review of the CBA Commercial Assets, LLC, series 2004-1, 2005-1, 2006-1, 2006-2 small balance U.S. CMBS transactions, Fitch Ratings has downgraded the following small balance bonds:

CBA Series 2005-1

-- $5.1 million class M-5 to 'BB-' from 'BB'.

CBA Series 2006-1

-- $4.6 million class M-2 to 'A-' from 'A';

-- $5 million class M-3 to 'BBB-' from 'BBB';

-- $2.9 million class M-4 to 'B' from 'BBB-';

-- $1.9 million class M-5 to 'CCC/DR1' from 'B'.

CBA Series 2006-2

-- $2.8 million class M-3 to 'BBB-' from 'BBB';

-- $2.3 million class M-4 to 'BB-' from 'BBB-';

-- $1.1 million class M-5 to 'B' from 'BB+'.

In addition, Fitch has affirmed the following classes:

CBA Series 2004-1

-- $24.4 million class A-1 at 'AAA';

-- $10.7 million class A-2 at 'AAA';

-- $5.8 million class A-3 at 'AAA';

-- Interest only class IO at 'AAA';

-- $2.9 million class M-1 'AAA';

-- $3.6 million class M-2 'AA+';

-- $3.7 million class M-3 at 'BBB+';

-- $770,000 class M-5 at 'BB'.

CBA Series 2005-1

-- $104.7 million class A at 'AAA';

-- interest only class X-1 at 'AAA';

-- interest only class X-2 at 'AAA';

-- $7.5 million class M-1 at 'AA';

-- $5.6 million class M-2 at 'A';

-- $2.7 million class M-3 at 'A-';

-- $3.8 million class M-4 at 'BBB+'.

CBA Series 2006-1

-- $103.9 million class A at 'AAA';

-- Interest only class X-1 at 'AAA';

-- $4.6 million class M-1 at 'AA'.

CBA Series 2006-2

-- $98.7 million class A at 'AAA';

-- Interest only class X-1 at 'AAA';

-- $3.8 million class M-1 at 'AA';

-- $4.9 million class M-2 at 'A-'.

Fitch placed the four CBA Commercial Asset, LLC small balance deals under analysis this month through its SMARTView process due to increasing delinquencies in these transactions. Three of the four deals have resulted in downgrades due to additional specially serviced loans and increased loss expectations since Fitch's last rating action.

In estimating loan losses, Fitch reviewed recent evaluations or appraisals provided by the special servicers, and applied haircuts to determine Fitch's expected loss. These losses were then applied to the individual transactions to determine estimated future credit enhancement.

The transactions are collateralized by small balance commercial loans secured by multifamily, retail, office, industrial, and mixed use properties. The loans are smaller than typical CMBS loans with an average loan size of $438,041 ranging from approximately $50,000 to $3 million, and in some instances are not structured as single purpose entities and are full recourse.

A high proportion of the transactions have upcoming Adjustable Rate Mortgage (ARM) resets.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.