Fitch Affirms CSFB Mortgage Securities Corp., Series 2001-SPG1

Business Wire, Dec 27, 2005

NEW YORK -- Fitch Ratings affirms Credit Suisse First Boston commercial mortgage pass-through certificates, series 2001-SPG1, as follows:

-- $23.9 million class A-1 at 'AAA';

-- $117.5 million class A-2 at 'AAA';

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

-- $30.8 million class B at 'AA';

-- $41 million class C at 'A';

-- $10.3 million class D at 'A-';

-- $13.7 million class E at 'BBB ';

-- $8.6 million class F at 'BBB';

-- $18.8 million class G at 'BBB-'.

The affirmations are due to the stable Fitch debt service coverage ratio (DSCR) and the experienced sponsorship and management by Simon Property Group, Inc. (Simon). The DSCR stability is the result of both loan amortization and the increased performance of the Ingram Park Mall (30%) in San Antonio, TX. As of the December 2005 distribution date, the aggregate principal balance was $264.6 million, a decline of 4.5% from the $277 million balance at issuance.

The DSCR, based on the current loan balance and a stressed mortgage constant, is 1.27 times (x), the same as at issuance. It is four basis points below the DSCR reported in Fitch's previous review in November 2004.

Fitch is concerned that the overall net cash flow (NCF) of the four cross-collateralized regional malls in this transaction has declined 4% since issuance. The NCF decline is due to higher vacancy rates and declining rents in the in-line space at three of the malls: Northlake Mall in Atlanta, GA (27%), Knoxville Center in Knoxville, TN (23%), and Town West Square in Wichita, KS (20%). Since issuance, the average in-line occupancy had declined by 10% as of September 2005. Overall occupancy, which includes in-line and anchor space, remains relatively stable at 92.8% vs. 94.5% at issuance.

The Northlake Mall performance continues to decline as a result of competition from a nearby mall that opened last year. The Fitch stressed trailing 12-month (TTM) NCF at this property as of September 2005 was 23% below NCF at issuance, with an in-line occupancy decline of 18% since issuance.

The Simon Group is rated 'BBB ' by Fitch and is one of the largest publicly traded real estate companies in North America. Simon's sponsorship, management experience, and longstanding relationships with all major national retailers are considered strengths in this transaction. Other transaction characteristics that are considered strengths are a hard lock-box provision that provides secure cash management practices, and the benefits of cross-collateralization among the four properties.

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