TEXT-Fitch cuts Titan Europe 2007-2 Limited's class F & G notes to 'Dsf'

Jan 26 - Fitch Ratings has downgraded Titan Europe 2007-2 Limited's class F and G commercial mortgage-backed notes as follows:

EUR18.5m class F (XS0302919641) downgraded to 'Dsf' from 'CCsf'; Recovery Estimate RE0%

EUR0.0m class G (XS0302920730) downgraded to 'Dsf' from 'CCsf'

The downgrade reflects the allocation of non-accruing interest (NAI) amounts to the two note tranches at the January 2012 interest payment date. This follows the completion of the workout process for the defaulted Portier loan.

In October 2011, EUR113.1m of net recoveries from the sale of the Portier German multifamily housing portfolio were applied towards the partial redemption of the class A notes. In January 2012, a further EUR1m was recovered, increasing the total recovery amount to 89% of Portier's securitised A-note balance. This resulted in EUR14m of NAI (effectively the loss on the Portier A-note) being applied to the junior notes, writing off the entire class G and EUR2.7m (12.9%) of class F.