Fitch Affirms Morgan Stanley Capital I Trust 2007-HQ13

Business Wire, Oct 7, 2008

NEW YORK & CHICAGO -- Fitch affirms and assigns Outlooks for Morgan Stanley Capital I Trust 2007-HQ13, commercial mortgage pass-through certificates as follows:

--$143.6 million class A-1 at 'AAA' Outlook Stable;

--$178.9 million class A-1A at 'AAA' Outlook Stable;

--$67.7 million class A-2 at 'AAA' Outlook Stable;

--$334.5 million class A-3 at 'AAA' Outlook Stable;

--$103.9 million class A-M at 'AAA' Outlook Stable;

--$72.8 million class A-J at 'AAA' Outlook Stable;

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

--$18.2 million class B at 'AA' Outlook Stable;

--$11.7 million class C at 'AA-' Outlook Stable;

--$16.9 million class D at 'A' Outlook Stable;

--$13.0 million class E at 'A-' Outlook Stable;

--$11.7 million class F at 'BBB ' Outlook Stable;

--$11.7 million class G at 'BBB' Outlook Stable;

--$13.0 million class H at 'BBB-' Outlook Negative;

--$3.9 million class J at 'BB ' Outlook Negative;

--$3.9 million class K at 'BB' Outlook Negative;

--$3.9 million class L at 'BB-' Outlook Negative.

Fitch does not rate the $10.4 million class M, the $2.6 million class N, the $3.9 million class O, or the $10.4 million class P.

The rating affirmations reflect minimal paydown since issuance and stable performance of the pool. As of the September 2008 distribution date, the transaction has paid down by 0.28% to $1.037 billion from $1.039 billion at issuance.

There have been no specially serviced loans since issuance. Fitch has identified three loans (17.6%) as Loans of Concern. The largest Fitch Loan of Concern (7.8%) is secured by a retail property in Atlantic City, NJ which is in the process of stabilization. An updated occupancy figure was not available and the property's income and occupancy are both lower than budgeted. Some tenants have minimum rent based off of a percentage of sales and other tenants have co-tenancy requirements that allow them to pay lower rent if occupancy is below a certain level.

The second largest Loan of Concern (7.6%) is secured by an office property in New York, NY. The property was 66% occupied as of June 2008, and a significant share of the property's revenue came from the sponsor's master lease and rent payments as a tenant.

There were two additional loans at issuance, Logan Town Center (7.3%) and Two Buckhead Plaza (5.0%), that were in the process of stabilizing. Fitch has reviewed the updated occupancy and cash flow information for these loans and has determined that they were in-line with the stabilization schedule set forth at issuance.

There are two shadow rated loans within the transaction: 42nd Street Retail (7.6%) and Vinings Jubilee (0.5%). Occupancy as of year end 2007 for 42nd Street Retail and Vinings were 94.5% and 100%, respectively, consistent with issuance. Both of the loans maintain investment grade shadow ratings.

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