Fitch Affirms Morgan Stanley Capital 1 Trust 2007-IQ13

Business Wire, Oct 15, 2008

NEW YORK -- Fitch Ratings affirms and assigns Outlooks to the Morgan Stanley Capital 1 Trust series 2007-IQ13 commercial mortgage pass-through certificates as follows:

--$36.7 million class A-1 at 'AAA'; Outlook Stable;

--$474.6 million class A-1A at 'AAA'; Outlook Stable;

--$114.8 million class A-2 at 'AAA'; Outlook Stable;

--$64 million class A-3 at 'AAA'; Outlook Stable;

--$448.8 million class A-4 at 'AAA'; Outlook Stable;

--$163.9 million class A-M at 'AAA'; Outlook Stable;

--$149.6 million class A-J at 'AAA'; Outlook Stable;

--$1,632.9 million class X at 'AAA'; Outlook Stable;

--$130.1 million class X-Y at 'AAA'; Outlook Stable;

--$32.8 million class B at 'AA'; Outlook Stable;

--$16.4 million class C at 'AA-'; Outlook Stable;

--$16.4 million class D at 'A'; Outlook Stable;

--$14.3 million class E at 'A-'; Outlook Stable;

--$18.4 million class F at 'BBB '; Outlook Stable;

--$14.3 million class G at 'BBB'; Outlook Stable;

--$18.4 million class H at 'BBB-'; Outlook Stable;

--$8.2 million class J at 'BB '; Outlook Stable;

--$2 million class K at 'BB'; Outlook Stable;

--$4.1 million class L at 'BB-'; Outlook Stable;

--$6.1 million class M at 'B '; Outlook Stable;

--$2 million class N at 'B'; Outlook Stable;

Fitch does not rate classes O and P.

The affirmations are the result of stable performance since issuance. The Outlooks reflect the likely direction of any rating changes over the next one to two years. The transaction has paid down 0.6% since issuance to $1.63 billion from $1.64 billion. The collateral consists of 174 loans on multi-family and commercial real estate properties in 32 states, with no state concentration exceeding 12.8%. Thirty-eight loans on co-op apartment buildings (8%) have investment grade shadow ratings.

Fitch considers six loans (1.56%) to be Fitch Loans of Concern. The largest of these loans (0.53%) is secured by a multi-family property in Los Angeles, CA and has experienced a decline in occupancy and provided inconsistent financial reporting. The second largest Loan of Concern (0.49%) is secured by a retail center in Apache Junction, AZ and has experienced decreased occupancy due to a major tenant vacating the property.

The four other Fitch Loans of Concern (1.03%) have debt service coverage ratios below 1.0 times (x) generally due to decreased occupancies and increased expenses. The note rates on loans in this transaction range from 5.44% through 6.61%, with all but two loans maturing after 2015.

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.