Fitch Downgrades COMM 2006-C7; Assigns Outlooks

NEW YORK--(Business Wire)--
Fitch Ratings has taken various rating actions on 14 classes of COMM 2006-C7,
commercial mortgage pass-through certificates. In addition, Fitch has assigned
Rating Outlooks, as applicable. A detailed list of rating actions follows at the
end of this press release.

The downgrades are the result of loss expectations and reflect Fitch's
prospective views regarding commercial real estate market value and cash flow
declines. Fitch forecasts potential losses of 4.3% for this transaction, should
market conditions not recover. Today's rating actions are based on losses of
2.8% including 100% of the losses associated with term defaults and any losses
associated with maturities within the next five years. Given the significant
term to maturity, Fitch's actions only account for 25% of the losses associated
with maturities beyond five years. The bonds with Negative Outlooks indicate
classes that may be downgraded in the future should full potential losses be
realized.

Fitch analyzed the transaction and calculated expected losses by assuming cash
flows on each of the properties decline 15% from year-end (YE) 2007 and property
values decline 35% from issuance. These loss estimates were reviewed in more
detail for loans representing 42.5% of the pool and, in certain cases, revised
based on additional information and/or property characteristics. The loans in
the reviewed sample accounted for 56.7% of the recognized loss in the deal.

Approximately 6.3% of the mortgages are scheduled to mature within the next five
years, with 4.9% maturing in 2011. In 2016, 84.5% of the pool is scheduled to
mature.

Fitch identified 23 Loans of Concern (13.2%) within the pool, eight of which
(3.2%) are specially serviced. One of the specially serviced loans (1.7%) is in
the transaction's top 15 loans (45.0%) by unpaid principal balance and five of
the specially serviced loans are current (2.7%). Three of the Fitch Loans of
Concern (4.8%) are within the transaction's top 15 loans.

Fourteen of the top 15 loans (40.8%) are expected to default during the term or
at maturity, with loss severities up to 48%. Three of the largest contributors
to loss are as follows: 1400 Eye Street NW (1.6% of the pool), Meadowood Napa
Valley (1.5%) and Hampton Green Apartments (0.3%).

1400 Eye Street NW is collateralized by a 175,127 square foot (sf) office
property in Washington DC. Most recent occupancy is 73% occupied, per the July
2009 rent roll, down from 88% at issuance. The most recent servicer reported
debt service coverage ratio (DSCR) is 0.55 times (x) as of first quarter 2009
(1Q'09). 16% of the tenant's leases are scheduled to roll in 2011. Based on
current performance and anticipated declines in performance, losses are expected
prior to the loan's maturity in 2016.

The Meadowood Resort is collateralized by a 98 room full service hotel in St.
Helena, CA. As of YE 2008 the property had a 0.84x DSCR due to increasing
operating expenses and stagnant revenue. The current average daily rate (ADR)
and revenue per available room (RevPAR) are $514.36 and $233.45, respectively.
Based on current performance and anticipated declines in performance, along with
increasing vacancies in the area retail market, losses are expected prior to the
loan's maturity in 2016.

Hampton Green Apartments is a 293 unit multifamily (MF) complex located in San
Antonio, TX that is currently in special servicing. The borrower has expressed
hardship due to substantial violence as a result of rising crime, area job
losses and ongoing freeway construction which have all caused negative cash
flow. Occupancy in June 2009 was 73%. Based on current performance and
anticipated declines in performance, losses are expected prior to the loan's
maturity in 2016.

Fitch downgrades, removes from Rating Watch Negative, and assigns Loss Severity
(LS) ratings and Outlooks to the following classes:

-- $24.5 million class C to 'A/LS5 from 'AA-'; Outlook Negative;

-- $21.4 million class E to 'BBB/LS5' from 'A-'; Outlook Negative;

-- $30.6 million class F to 'BBB-/LS5' from 'BBB+'; Outlook Negative;

-- $24.5 million class G to 'BB/LS5' from 'BBB'; Outlook Negative.

-- $30.6 million class H to 'B/LS5' from 'BBB-'; Outlook Negative;

-- $12.3 million class J to 'B-/LS5' from 'BB+'; Outlook Negative;

-- $6.1 million class K to 'B-/LS5' from 'BB'; Outlook Negative;

-- $9.2 million class L to 'B-/LS5' from 'BB-'; Outlook Negative;

-- $3.1 million class M to 'B-/LS5' from 'B+'; Outlook Negative;

-- $6.1 million class N to 'B-/LS5' from 'B'; Outlook Negative;

Fitch has affirmed, removed from Rating Watch Negative, and assigned a Negative
Outlook to the following classes:

-- $189.6 million class A-J to 'AAA/LS3';

-- $52.0 million class B to 'AA/LS4';

-- $36.7 million class D to 'A/LS5';

-- $9.2 million class O at 'B-/LS5'.

Additionally, Fitch affirms, assigns LS ratings and a Stable Outlook to the
following classes:

-- $29.7 million class A-1 at 'AAA/LS1;

-- $108.0 million class A-2 at 'AAA/LS1;

-- $40.1 million class A-3 at 'AAA/LS1';

-- $98.8 million class A-AB at 'AAA/LS1';

-- $1,052.7 million class A-4 at 'AAA/LS1';

-- $319.8 million class A-1A at 'AAA/LS1';

-- $244.7 million class A-M at 'AAA/LS2';

-- Interest-only class X at 'AAA'.

Fitch does not rate the $33.6 million class P.

Additional information on Fitch's amended criteria for analyzing recent vintage
U.S. CMBS is available in the July 8, 2009 report, 'Surveillance Methodology for
Recent Vintage U.S. CMBS,' which is available at 'www.fitchratings.com' under
the following headers:

Structured Finance >> CMBS >> Criteria Reports

Fitch will release a report titled 'BSCMSI 2006-TOP22 Commercial Mortgage Trust'
that will contain a graph of revised loss expectations for the transaction at
'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Special Reports

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.

Fitch Ratings, New York
Doug Middleton, +1-212-908-9141
Adam Fox, +1-212-908-0869
Sandro Scenga, +1-212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com

Copyright Business Wire 2009