Fitch Places 2 Classes of BSCMSI 2006-BBA7 on Watch Negative.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings has placed two classes of Bear Stearns Commercial Mortgage Securities, Inc. (BSCMSI) Series 2006-BBA7 on Rating Watch Negative. The Negative Watch is due to interest shortfalls as a result of special servicing fees associated with the Citigroup Property Investors Hilton Portfolio (6.7%). The loan transferred to the special servicer in July 2009 for imminent default. The servicer continues to negotiate with the borrower regarding workout options, including the borrower's request to exercise the loan's final, one-year extension option. The loan remains current. The classes will remain on Rating Watch Negative while Fitch determines the probable duration and potential recovery of the shortfalls. Two loans remain in the transaction: The Columbia Sussex Portfolio (93.1%), and The Hilton Portfolio (6.7%). As of June 2009, the Columbia Sussex Portfolio reported a debt service coverage ratio The debt service coverage ratio (DSCR), or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment real estate. It is a popular benchmark used in the measurement of an income-producing property’s ability to produce (DSCR DSCR See: Debt-service coverage ratio ) of 3.38 times (x), and the Hilton Garden Inn Hilton Garden Inn is the name of a chain of hotels operated by Hilton Hotels Corporation. Hilton Garden Inns are considered to be upscale, mid-priced hotels that are designed for both business and leisure travelers. The hotel brand is similar to that of the Courtyard by Marriott brand. reported a DSCR of 2.60x. Fitch expects hotel performance will continue to be affected by the weak economy. The loans remaining in the pool are hotel assets, which have been among one of the most affected property types. Fitch expects performance may continue to decline through year-end 2009, or until business and leisure travel demands increase. Fitch has placed the following classes on Rating Watch Negative: --$8.8 million class J 'BBB'; --$9.6 million class K 'BBB-'. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP HTTP in full HyperText Transfer Protocol Standard application-level protocol used for exchanging files on the World Wide Web. HTTP runs on top of the TCP/IP protocol. ://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. |
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