TEXT-S&P takes various rating actions on 2 CMBS, 1 Re-REMIC deals

Oct 23 -

OVERVIEW

-- We lowered our ratings on eight classes from two CMBS transactions and removed seven of these ratings from CreditWatch with negative implications.

-- Concurrently, we affirmed our ratings on three classes from one CMBS transaction and one class from a re-REMIC transaction and removed all four of these ratings from CreditWatch with positive implications.

-- The rating actions on the CMBS transactions primarily reflect current and expected credit enhancement levels on the certificates following our analysis of the transactions using our recently updated criteria for rating U.S. and Canadian CMBS.

-- The rating action on the re-REMIC transaction reflects our analysis of the sole collateral securing the transaction, the class A-4 commercial mortgage certificates from ML-CFC Commercial Mortgage Trust 2007-7.

Standard & Poor's Ratings Services today lowered its ratings on eight classes from two commercial mortgage-backed securities (CMBS) transactions and removed seven of these ratings from CreditWatch with negative implications. Concurrently, we affirmed our ratings on three classes from one CMBS transaction and one class from a re-REMIC transaction and removed all four of them from CreditWatch with positive implications (see list). The CreditWatch resolutions are related to CreditWatch placements that occurred on Sept. 5, 2012.

The downgrades primarily reflect our expected available credit enhancement for the affected tranches, which we believe is less than our most recent estimate of necessary credit enhancement for the most recent rating levels. The downgrades also reflect our views regarding the current and future performance of the collateral supporting the respective transactions.

The affirmations primarily reflect our expected available credit enhancement for the affected tranches, which we believe will remain consistent with the most recent estimate of necessary credit enhancement for the current rating levels. The affirmed ratings also acknowledge our expectations regarding the current and future performance of the collateral supporting the respective transaction.

The affirmation of the rating on class "ML-JR" from Citigroup Commercial Mortgage Securities' 2010-RR3 and its removal from CreditWatch with positive implications reflects our analysis of the sole asset securing the transaction, which is a $155.2 million portion of the $787.9 class A-4 commercial mortgage pass-through certificates from ML-CFC Commercial Mortgage Trust 2007-7, a U.S. CMBS transaction. We affirmed our rating on the ML-JR class from the re-REMIC because we affirmed our 'A- (sf)' rating on class A-4 from ML-CFC Commercial Mortgage Trust 2007-7. Our analysis followed the criteria in "Methodology And Assumptions For Rating Resecuritizations Of U.S. Super-Senior Conduit/Fusion CMBS Classes," published Aug. 14, 2009

Today's rating actions follow a detailed review of the performance of the collateral supporting the relevant securities and transaction structures. This review was similar to the review we conducted before placing 744 U.S. and Canadian CMBS ratings on CreditWatch following the release of our updated ratings criteria for these transactions, but was more detailed with respect to collateral and transaction performance. For more information on the analytic process we used for those CreditWatch placements, refer to "The Application Of Standard & Poor's Revised U.S. And Canadian CMBS Criteria For The Sept. 5, 2012 CreditWatch Actions," published Sept. 5, 2012.

RELATED CRITERIA

-- Rating Methodology And Assumptions For U.S. And Canadian CMBS, Sept. 5, 2012 CMBS Global Property Evaluation Methodology, Sept. 5, 2012

-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011

-- U.S. Government Support In Structured Finance And Public Finance Ratings, Sept. 19, 2011

-- CMBS: Methodology And Assumptions For Rating Resecuritizations Of U.S. Super-Senior Conduit/Fusion CMBS Classes, Aug. 14, 2009

-- U.S. CMBS 'AAA' Scenario Loss And Recovery Application, July 21, 2009

RELATED RESEARCH

-- U.S. And Canada CMBS Ratings Affected By The Sept. 5, 2012, CreditWatch Placements, Sept. 5, 2012

-- U.S. CRE CDO And Re-REMIC Ratings Affected By The Sept. 5, 2012, CMBS Criteria Update, Sept. 5, 2012

-- Application Of CMBS Global Property Evaluation Methodology In U.S. and Canadian Transactions Property Commentary, Sept. 5, 2012

-- The Application Of Standard & Poor's Revised U.S. And Canadian CMBS Criteria For The Sept. 5, 2012, CreditWatch Actions, Sept. 5, 2012

RATING ACTIONS AND CREDITWATCH ACTIONS

LB-UBS Commercial Mortgage Trust 2007-C1

Commercial mortgage pass-through certificates series 2007-C1

Rating

Class To From Credit enhancement (%)

A-M BB- (sf) BBB (sf)/Watch Neg 20.06

A-J B- (sf) BB- (sf)/Watch Neg 10.37

B B- (sf) B+(sf)/Watch Neg 9.51

C CCC (sf) B+ (sf)/Watch Neg 7.80

D CCC- (sf) B (sf)/Watch Neg 6.66

E CCC- (sf) CCC+(sf) 6.09

ML-CFC Commercial Mortgage Trust 2007-7

Commercial mortgage pass-through certificates series 2007-7

Rating

Class To From Credit enhancement (%)

A-4 A- (sf) A- (sf)/Watch Pos 26.95

A-4FL A- (sf) A- (sf)/Watch Pos 26.95

A-1A A- (sf) A- (sf)/Watch Pos 26.95

A-M B-(sf) BB (sf)/Watch Neg 14.29

A-MFL B-(sf) BB (sf)/Watch Neg 14.29

Citigroup Commercial Mortgage Securities Inc.

Resecuritization mortgage pass-through certificates series 2010-RR3

Rating

Class To From Credit enhancement (%)

ML-JR A- (sf) A- (sf)/Watch Pos 0.00