TEXT-Fitch downgrades 3 classes of CD 2007-CD4

Thu Feb 28, 2013 3:31pm EST

Feb 28 - Fitch Ratings has downgraded three classes and affirmed 21 classes
of CD Commercial Mortgage Trust commercial mortgage pass-through certificates
series 2007-CD4 due to further deterioration of performance, most of which
involves increased loss expectations on the specially serviced assets. A
detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch modeled losses of 18.1% of the remaining pool; expected losses on the
original pool balance total 15.9%, including losses already incurred. The pool
has experienced $104.3 million (1.6% of the original pool balance) in realized
losses to date. Fitch has designated 94 loans (27.4%) as Fitch Loans of Concern,
which includes 34 specially serviced assets (20.3%).

As of the February 2013 distribution date, the pool's aggregate principal
balance has been reduced by 19.6% to $5.34 billion from $6.64 billion at
issuance. No loans have defeased since issuance. Interest shortfalls are
currently affecting classes A-J through S.

The largest contributors to expected losses are two regional mall assets,
Citadel Mall (2.7% of the pool) and Northwest Arkansas Mall (2.4%). The two
assets were originally crossed as a portfolio. The malls are located in Colorado
Springs, CO and Fayetteville, AR. The loans transferred to special servicing in
October 2009 due to imminent default and are currently both real estate owned
(REO).

The anchors at the Citadel Mall, all of which own their own space, are JCPenney
and Dillard's. Inline occupancy including temporary tenants is currently 96%;
60% excluding temporary tenants and 94% overall. Current inline sales at the
mall are approximately $330 per square foot (psf).

The anchors at the Northwest Arkansas Mall are Dillard's (not part of the
collateral), JCPenney and Sears. Inline occupancy is currently 94% including
temporary tenants; 84% excluding temporary tenants and 97% overall. Current
inline sales at the mall are approximately $190 psf.

The next largest contributor to expected losses is the specially-serviced
Riverton Apartments (4.2% of the pool), which is secured by a class B,
rent-stabilized multifamily housing project, consisting of 1,228 units, located
in Harlem, NY. The loan transferred to special servicing in August 2008 due to
imminent default and is currently REO

Per the special servicer, the asset is performing well as their focus has been
on maintaining occupancy. The special servicer was able to recover several low
paying rent stabilized units last year which has enabled them to renovate and
re-lease the units at market rent. The asset is currently 98% occupied.

The third largest contributor to expected losses is the specially-serviced Loews
Lake Las Vegas (2.2%), which is secured by a 493 room full-service hotel located
in Lake Las Vegas, NV, 13 miles east of the Las Vegas strip. The property is an
attractive resort with usual amenities, but does not have a casino. The loan was
transferred to special servicing in March 2009 due to imminent default and is
currently REO.

Per the special servicer, the asset is now operating as a Westin hotel following
a rebranding of the property. Although performance has seen some improvement in
2012, the property continues to underperform its competitive set. Per the
December 2012 Smith Travel Research (STR) report, the trailing 12 month (TTM)
occupancy is 37.4%, with an average daily rate (ADR) $128.89, and revenue per
available room (RevPAR) of $48.20 compared to 64.7%, $109.68, and $70.91 for its
competitive set.

RATING SENSITIVITIES

The ratings of the investment grade classes are expected to remain stable. The
distressed classes (those rated below 'B') are expected to be subject to further
downgrades as losses are realized. The 'BB' rated classes, while expected to be
stable may be subject to further rating actions should realized losses be
greater or less than Fitch's expectations. Furthermore, due to the high volume
of special serviced assets any prolonged workouts may result in increased fees
and expenses, leading to further downgrades.

Fitch downgrades the following classes and assigns or revises Rating Outlooks
and Recovery Estimates (REs) as indicated:

--$595 million class A-MFX to 'BBsf' from 'Asf', Outlook Stable;
--$65 million class A-MFL to 'BBsf' from 'Asf', Outlook Stable;
--$585.7 million class A-J to 'Csf' from 'CCsf', RE 45%.

Fitch affirms the following classes as indicated:

--$226.6 million class A-2B at 'AAAsf', Outlook Stable;
--$464.2 million class A-3 at 'AAAsf', Outlook Stable;
--$134.9 million class A-SB at 'AAAsf', Outlook Stable;
--$1.7 billion class A-4 at 'AAAsf', Outlook Stable;
--$861.9 million class A-1A at 'AAAsf', Outlook Stable;
--$40.5 million class WFC-X at 'BBB+sf'; Outlook Stable;
--$7.7 million class WFC-1 at 'BBB+sf'; Outlook Stable;
--$8.7 million class WFC-2 at 'BBBsf'; Outlook Stable;
--$24.1 million class WFC-3 at 'BBB-sf'; Outlook Stable;
--$41.2 million class B at 'Csf', RE 0%;
--$90.7 million class C at 'Csf', RE 0%;
--$57.7 million class D at 'Csf', RE 0%;
--$41.2 million class E at 'Csf', RE 0%;
--$49.5 million class F at 'Csf', RE 0%;
--$66 million class G at 'Csf', RE 0%;
--$74.2 million class H at 'Csf', RE 0%;
--$66 million class J at 'Csf', RE 0%;
--$74.2 million class K at 'Csf', RE 0%;
--$24.7 million class L at 'Csf', RE 0%;
--$16.5 million class M at 'Csf', RE 0%;
--$16.5 million class N at 'Csf', RE 0%.

The class A-1 and A-2A certificates have paid in full. Fitch does not rate the
class O, P, Q and S certificates. Fitch previously withdrew the ratings on the
interest-only class XP, XC and XW certificates.
Classes WFC-1, WFC-2, and WFC-3 and the interest only WFC-X is backed by the
B-note of One World Financial Center. The classes are affirmed due to the stable
performance.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions
is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS
Surveillance and Re-REMIC Criteria', which is available at
'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

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);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec.
18, 2012).

Applicable Criteria and Related Research
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
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