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Banks

S&P cuts Bear Stearns Comm Mtg Securities rating

 (The following statement was released by the rating agency.)
OVERVIEW
  -- We lowered our ratings on three U.S. CMBS classes from Bear Stearns
Commercial Mortgage Securities Trust 2002-TOP6.
  -- The downgrade of class M to 'D' follows a principal loss experienced
by the class, which was detailed in the August 2010 remittance report.
  -- The downgrades of classes K and L reflect credit support erosion.
 Aug 19 - Standard & Poor's Ratings Services today lowered its ratings on
three classes of commercial mortgage pass-through certificates from Bear
Stearns Commercial Mortgage Securities Trust 2002-TOP6, a U.S. commercial
mortgage-backed securities (CMBS) transaction (see list).
The downgrade of class M to 'D' follows a principal loss sustained by the
class, which was detailed in the August 2010 remittance report. The class M
certificate experienced reported losses totaling 67.5% of its $2.8 million
opening certificate balance. To date, class N, which is not rated by Standard
& Poor's, has lost 100% of its $11.2 million original certificate balance. The
downgrades of classes K and L reflect credit support erosion due to the
write-down of classes M and N.
The principal loss and corresponding credit support erosion resulted from the
liquidation of an asset that was with the special servicer, Berkadia
Commercial Mortgage LLC. The Nortel Networks asset is a 281,758-sq.-ft. office
property in Richardson, Texas. The asset had a total exposure of $28.6
million. The asset was transferred to the special servicer in September 2009
and became real estate owned (REO) in March 2010. The trust incurred a $12.0
million realized loss when the asset was liquidated during the August
reporting period. Based on the August 2010 remittance report data, the loss
severity for this asset was 44.2% (based on the asset's balance at the time of
disposition).
As of the August 2010 remittance report, the collateral pool consisted of 124
assets with an aggregate trust balance of $792.6 million, down from 150 assets
totaling $1.12 billion at issuance. Two assets, totaling $4.8 million (0.6%),
are with the special servicer. To date, the trust has experienced losses
totaling $13.1 million on two assets. Based on the August 2010 remittance
report, the weighted average loss severity for these assets was approximately
41.8%.
RELATED CRITERIA AND RESEARCH
  -- Principles-Based Rating Methodology For Global Structured Finance
Securities, published May 29, 2007.
  -- U.S. CMBS Rating Methodology And Assumptions For Conduit/Fusion Pools,
published June 26, 2009.
RATINGS LOWERED
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6
         Rating
Class     To       From      Credit enhancement (%)
K         CCC      B+                          0.82
L         CCC-     B                           0.11
M         D        B-                          0.00
Primary Credit Analyst: Gregory Ramkhelawan, CFA, New York (1) 212-438-3041;
                     gregory_ramkhelawan@standardandpoors.com
Secondary Credit Analyst: James Digney, New York (1) 212-438-1832;
                       james_digney@standardandpoors.com
  (New York Ratings Team, 646 223 6323; edith.honan@thomsonreuters.com, Reuters
Messaging: edith.honan@thomsonreuters.com@reuters.net))
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