Fitch Places 3 Classes from Cobalt CMBS Comm'l Mtge Trust 2006-C1 on Watch Negative

Business Wire,  July 7, 2008  

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NEW YORK -- Fitch Ratings places the following classes of Cobalt CMBS Commercial Trust commercial mortgage pass-through certificates, series 2006-C1 on Rating Watch Negative:

--$3.2 million class M 'B+';

--$6.3 million class N 'B';

--$6.3 million class O 'B-'.

The Rating Watch Negative placements are due to the transfer to special servicing of the eighth largest loan (2.5%), which is shadow rated by Fitch.

The specially serviced loan is the Fortress/Ryan's portfolio, collateralized by 130 retail properties, specifically a mix of restaurant tenants, located in 22 different states. The loan is current, but it was transferred to the special servicer when the Master Lessee and Lease Guarantor filed for bankruptcy. The borrower and the special servicer are currently reviewing workout options. Once more information is known including valuations, workout strategies, lease status and the status of store operations, Fitch will revisit the ratings. Downgrades are possible if losses are expected or the loan is expected to perform significantly below the level at issuance.

The Fortress/Ryan's Portfolio properties also secure a pari passu companion loan that is not an asset of the trust. It was securitized in the COMM 2006-C8 transaction.

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.

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