News Column

Fitch Upgrades 2 Classes of CSFB 2000-C1

August 8, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded two and affirmed four distressed classes of Credit Suisse First Boston Mortgage Securities Corp. commercial mortgage pass-through certificates series 2000-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades are due to increased credit enhancement from payoffs and principal amortization and defeasance. There are 25 loans totaling $17.7 million remaining in the pool, four of which are defeased (7.7%) and none of which are delinquent or in special servicing. Fitch has designated five of the remaining loans (13.6%) as Fitch Loans of Concern. Interest shortfalls are currently affecting classes H through M.

The remaining pool is highly concentrated, with cooperative housing as the largest property type representing 59% of the pool. The other property types are office (28%, the largest loan in the pool), multifamily (12%, the third largest loan in the pool), and industrial (less than 1% of the pool). There are 22 fully amortizing loans (54% of the pool). Maturity dates of the remaining loans are as follows: 2014, 13.4%; 2015, 36.6%%; 2019, 9.5%; 2020, 12.3% and 2024, 28.3%.

Fitch modeled losses of 4.5% of the remaining pool; expected losses on the original pool balance total 4.6%, including $50 million (4.5% of the original pool balance) in realized losses to date. As of the July 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.4% since issuance.

The largest loan in the pool is the 520 US Highway 22 loan (28.3%) which is secured by a 60,320 square foot (sf) office property located in Bridgewater, NJ. Per the most recent rent roll, the property is 100% occupied with an average in-place rent of $24.48 per sf. The rent roll at the property is diverse and no rollover is projected until 2017 and 2018. The debt service coverage ratio (DSCR) for the property as of year-end 2013 was 1.21x, down slightly from the 1.26x reported as of year-end 2012. The fully amortizing loan matures in 2024.

The second largest loan in the pool is The Ponds Cooperative Homes loan (27.4%) which is secured by a 144-unit cooperative multifamily building located in Okemos, MI, in the Lansing MSA. The loan was previously in special servicing due to maturity default at its original maturity in 2010. The loan was modified at which time the term was increased by 59 months to January 2015 and the rate was reduced from 8.9% to 6.5%.

The third largest loan in the pool is also the largest contributor to expected losses. The Timber Ridge Apartments loan (12.1% of the pool) is secured by a multifamily property consisting of 136 units located in Arlington, TX. Current financials were not available on the property. At Fitch's last rating action, the master servicer reported the decline in performance was as a result of decreased rents, lower occupancy, and competition in the area. The most current financial information is from May 2013, at which time the property was 92% occupied with average rents at $444 per unit. The DSCR as of the same period was 0.71x. The property's submarket shows slightly improving metrics. According to REIS, as of the second quarter 2014, the Fort Worth Central Arlington multifamily submarket has a vacancy rate of 4.5%, down from 5.2% a year prior, with average asking rent of $654 per unit, up from $620 per unit a year prior.

RATING SENSITIVITIES

Rating Outlooks on class G remains Stable. Class H is assigned a Rating Outlook Stable. Further upgrades are limited by the concentrated nature of the pool.

Fitch upgrades the following classes and assigns Rating Outlooks as indicated:

--$918,267 class G to 'AAAsf' from 'Asf', Outlook Stable;

--$12.5 million class H to 'Bsf' from 'CCCsf', Outlook Stable.

Fitch affirms the following classes as indicated:

--$4.3 million class J at 'Dsf'; RE 85%;

--$0 class K at 'Dsf'; RE 0%;

--$0 class L at 'Dsf'; RE 0%;

--$0 class M at 'Dsf'; RE 0%.

Classes A-1, A-2, B, C, D, E, and F have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the rating on the interest-only class A-X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', 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'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=848074

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE 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 ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Valerie Jayson, +1 312-368-3116

Associate Director

Fitch Ratings, Inc.

70 West Madison Street

Chicago, IL 60602

or

Committee Chairperson

Mary MacNeill, +1 212-908-0785

Managing Director

or

Media Relations:

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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