TEXT-S&P cuts 2 Morgan Stanley Cap I 2005-RR6 ratings to 'D (sf)'
OVERVIEW -- We lowered our ratings on two classes from Morgan Stanley Capital I Inc.'s series 2005-RR6, a U.S. CMBS re-REMIC transaction. -- We lowered our ratings on classes C and D to 'D (sf)' from 'CCC- (sf)' due to interest shortfalls that we expect will continue for the foreseeable future. -- The downgrades reflect interest shortfalls affecting the transaction according to the Nov. 26, 2012, trustee report. Dec 7 - Standard & Poor's Ratings Services today lowered its ratings on two classes of commercial mortgage-backed securities (CMBS) pass-through certificates from Morgan Stanley Capital I Inc.'s series 2005-RR6 (MSC 2005-RR6), a U.S. CMBS resecuritized real estate mortgage investment conduit (re-REMIC) transaction. The downgrades to classes C and D reflect our analysis following interest shortfalls to the transaction. We also considered the potential for additional classes to experience interest shortfalls in the future. According to the Nov. 26, 2012, trustee report, cumulative interest shortfalls to the transaction totaled $4.6 million affecting class C and the classes subordinate to it. The interest shortfalls were the result of interest shortfalls on 11 of the underlying CMBS transactions primarily due to the master servicer's recovery of prior advances, appraisal subordinate entitlement reductions (ASERs), servicers' nonrecoverability determinations for advances, and special servicing fees. We lowered our ratings on classes C and D to 'D (sf)' due to interest shortfalls that we expect will continue for the foreseeable future. If the interest shortfalls to MSC 2005-RR6 continue, we will evaluate the shortfalls and may take further rating actions as we determine appropriate. According to the Nov. 26, 2012, trustee report, 47 CMBS classes ($195.2 million, 100%) from 30 distinct transactions issued between 1997 and 2005 collateralize MSC 2005-RR6. Standard & Poor's will continue to review whether, in its view, the ratings assigned to the notes remain consistent with the credit enhancement available to support them and take rating actions as it deems necessary. Temporary telephone contact numbers: Ivy Roldan (917-576-6562); Samir Mistry (347-498-4781). STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at "RELATED CRITERIA AND RESEARCH -- Industry Economic and Ratings Outlook: U.S. Commercial Real Estate Trends Are Improving And CMBS Performance Is Stabilizing, Nov. 5, 2012 -- Rating Methodology And Assumptions For U.S. And Canadian CMBS, Sept. 5, 2012 -- CMBS Global Property Evaluation Methodology, Sept. 5, 2012 -- Application Of CMBS Global Property Evaluation Methodology In U.S. And Canadian Transactions, Sept. 5, 2012 -- Global CDOs Of Pooled Structured Finance Assets: Methodology And Assumptions, Feb. 21, 2012 -- General Cash Flow Analytics For CDO Securitizations, Aug. 25, 2004 RATINGS LOWERED Morgan Stanley Capital I Inc. Commercial mortgage-backed securities pass-through certificates series 2005-RR6 Rating Class To From C D (sf) CCC- (sf) D D (sf) CCC- (sf)
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