Fitch Affirms Hometown Commercial Capital Trust 2006-1

NEW YORK--(Business Wire)--
Hometown Commercial Capital Trust 2006-1, commercial mortgage
pass-through certificates are affirmed by Fitch Ratings as follows:

--$107 million class A at 'AAA';

--Interest-only class X at 'AAA';

--$3.4 million class B at 'AA';

--$1.7 million class C at 'AA-';

--$3.2 million class D at 'A';

--$4.3 million class E at 'BBB+';

--$1.5 million class F at 'BBB';

--$1.9 million class G at 'BBB-';

--$1.1 million class H at 'BB+';

--$560,000 class J at 'BB';

--$746,000 class K at 'BB-';

--$372,000 class L at 'B+';

--$560,000 class M at 'B';

--$559,000 class N at 'B-'.

The $3.7 million class O is not rated by Fitch.

Although, delinquencies are higher than expected at issuance,
credit enhancement levels remain sufficient to affirm the current
ratings. Should additional loans become delinquent or specially
serviced, downgrades of the junior classes are possible.

As of the May 2008 distribution date, the pool's aggregate
collateral balance has been reduced by 12.5% to $130.5 million from
$149.2 million at issuance. The transaction remains geographically
diverse with the largest concentrations in Tennessee (16.7%),
California (14.6%), Texas (12.8%) and New York (11.8%).

There are currently seven loans (22.7%) in special servicing, of
which Fitch expects losses on three (15.6%). The two largest loans
(14.5%) are secured by multifamily complexes located in Nashville, TN
and are not cross-collateralized. The loans are current and were
transferred to special servicing due to a technical default.

The third largest specially serviced loan (3.8%) is secured by a
retail property located in Boaz, AL. The loan was transferred to
special servicing due to a monetary default. The servicer has received
delinquent payments and the loan is currently due for May. In
addition, the decline in performance was the result of a major tenant
vacancy. The borrower has leased a portion of the vacant space and
continues to market the remaining space. The property is now 88%
occupied.

Fitch identified 18 loans (51.9%) as loans of concern for
declining performance and occupancy. Fitch will continue to closely
monitor these loans for any further declines and additional transfers
to the special servicer.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Lisa Cook, +1-212-908-0665
Adam Fox, +1-212-908-0869
Sandro Scenga, +1-212-908-0278 (Media Relations)

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