Fitch Affirms Bear Stearns 2007-PWR 16

Business Wire, August 26, 2008

NEW YORK -- Fitch Ratings affirms Bear Stearns Commercial Mortgage Securities Trust 2007-PWR16 as follows:

--$74.2 million class A-1 at 'AAA';

--$681 million class A-2 at 'AAA';

--$58.2 million class A-3 at 'AAA';

--$130.7 million class A-AB at 'AAA';

--$954.4 million class A-4 at 'AAA';

--$411 million class A-1A at 'AAA';

--$331.4 million class A-M at 'AAA';

--$273.4 million class A-J at 'AAA';

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

--$33.1 million class B at 'AA ';

--$33.1 million class C at 'AA';

--$33.1 million class D at 'AA-';

--$20.7 million class E at 'A ;

--$24.9 million class F at 'A';

--$29 million class G at 'A-'.

--$41.4 million class H at 'BBB '.

--$33.1 million class J at 'BBB'.

--$33.1 million class K at 'BBB-'.

--$16.6 million class L at 'BB ';

--$12.4 million class M at 'BB';

--$12.4 million class N at 'BB-';

--$8.3 million class O at 'B ';

--$8.3 million class P at 'B';

--$8.3 million class Q at 'B-'.

Fitch does not rate the $41.4 million class S.

The affirmations are due to stable pool performance and minimal principal paydown since issuance. As of the August 2008 distribution date, the pool's aggregate certificate balance has been reduced 0.3% to $3.304 billion from $3.314 billion at issuance. Currently there are no delinquent or specially serviced loans.

Fitch has reviewed the performance of the two shadow rated loans, Clear Creek Plaza (0.2%) and Residential Inn San Antonio (0.2%). Both loans maintain investment grade shadow ratings due to stable performance.

Clear Creek Plaza is a five-year amortizing balloon loan secured by four single-story anchored retail buildings totaling 56,494 square feet (SF) in Carson City, NV. Servicer-reported year-end (YE) 2007 debt service coverage ratio (DSCR) was 2.11 times (x), compared to 1.97x at issuance. Occupancy has remained stable at 97.6% since issuance.

Residential Inn San Antonio is a five-year interest-only (IO) loan secured by a 120-room limited service hotel in San Antonio, TX. Servicer-reported YE 2007 DSCR was 4.16x, compared to 4.38x at issuance. Occupancy as of first-quarter 2008 was 77% with revenue per available room (RevPar) at $60.77, compared to occupancy of 90% with RevPar at $78.32 at issuance. The decline in occupancy and revenue was due to seasonal fluctuation.

Fitch has identified 10 loans (2.3%) as Fitch loans of concern due to declining DSCR and/or occupancy. The largest Fitch loan of concern (0.9%) is secured by a 634-unit garden-style apartment complex located in New Castle, DE. Servicer-reported YE 2007 DSCR was 0.92x with an occupancy rate of 76.8%, compared to DSCR of 1.17x with an occupancy rate of 85.3% at issuance. The property has been under substantial renovation since May 2007, which was anticipated at issuance. Most of the construction work has been completed and the property occupancy has improved to the same level at issuance.

The second largest Fitch loan of concern (0.3%) is secured by a 135,401 SF retail property in Lakewood, CO. Servicer-reported YE 2007 DSCR was 0.98x with occupancy at 78%, compared to DSCR of 1.35x and occupancy of 79% at issuance. Fitch will continue to monitor this loan.

Loan maturities are concentrated in the year 2012 and 2017, when 23% and 72.9% of the pool, respectively, are scheduled to mature.

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