Fitch Ratings Affirms Classes of Salomon Brothers 2000-NL1

Business Wire,  March 12, 2008  

Tags: Salomon Brothers

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NEW YORK -- Fitch affirms Salomon Brothers Mortgage Securities VII, Inc.'s commercial mortgage pass-through certificates, series 2000-NL1 as follows:

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

--$1.2 million class J at 'AAA';

--$8.4 million class K at 'AA';

--$3.3 million class L at 'BB-'.

Fitch does not rate the $3.0 million class M certificates. Classes A-1, A-2, B, C, D, E, F, G and H have paid in full.

Although credit enhancement levels have increased since Fitch's last rating action, affirmations are warranted due to increasing loan concentration. As of the February 2008 distribution date, the pool's aggregate certificate balance has decreased 95.3% to $15.9 million from $334.2 million at issuance.

Currently there are eight loans remaining in the pool, including two defeased loans (40.9%). None of the loans have lockout provisions; thus, the deal is expected to continue to pay down. 91.1% of the remaining loans mature in 2008. The weighted average mortgage coupon of the remaining non-defeased loans is 6.78%.

There are no delinquent or specially serviced loans. Two loans have been identified as Fitch loans of concern due to declining performance. The first Fitch loan of concern (17.5%) is the largest non-defeased loan in the pool and is secured by a strip mall located in Speedway, IN. Servicer reported 2nd quarter 2007 DSCR was 0.29 times (x) with 82% occupancy rate, compared to DSCR of 1.75x and 100% occupancy rate at issuance. This loan is scheduled to mature in October 2008 and has an interest rate of 6.84%.

The second Fitch loan of concern (11.7%) is the second largest non-defeased loan in the pool and is secured by a 23,192 square foot (SF) office property in Cornelius, NC. Servicer reported 2nd quarter 2007 DSCR was 0.45x with 82% occupancy rate, compared to DSCR of 1.41x and 100% occupancy rate at issuance. This loan is scheduled to mature in August 2008 and has an interest rate of 7.22%.

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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