TEXT-Fitch puts 3 classes of MSCI 2007-XLF rating watch negative

Fri Oct 5, 2012 5:11pm EDT

Oct 5 - Fitch Ratings has placed three classes of Morgan Stanley Capital I
Trust series 2007-XLF (MSCI 2007-XLF) on Rating Watch Negative. A detailed list
of rating actions follows at the end of this release.

The Rating Watch Negative placements are due to expected interest shortfalls.
The projected interest shortfalls are the result of a liquidation fee charged by
the loan's special servicer, CT Investment Management Co., LLC, in connection to
the full payoff of New World Tower. Non-investment grade interest is not
sufficient to cover the fee and classes B through J are expected to be impacted.
Class A-2 is not expected to be subject to interest shortfalls per the master
servicer, Midland Loan Services, Inc.

Fitch expects to resolve the Rating Watch status within the next several months
as these classes should receive full interest returned within that period.
Should classes B through D not recoup their full interest proceeds in a timely
manner, these classes are expected to be downgraded one to two rating
categories.

Fitch has placed the following classes on Rating Watch Negative as indicated:

--$41.2 million class B at 'AAAsf';
--$41.2 million class C at 'AAsf';
--$25.2 million class D at 'AAsf';


Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate
Transactions' (Dec. 1, 2011).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate
Transactions
FILED UNDER:
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