Fitch Affirms Morgan Stanley Capital I 2007-TOP25

Business Wire, Oct 7, 2008

CHICAGO -- Fitch Ratings affirms and assigns Outlooks for Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-TOP25, as follows:

--$52 million class A-1 at 'AAA' Outlook Stable;

--$77.7 million class A-2 at 'AAA' Outlook Stable;

--$62.3 million class A-AB at 'AAA' Outlook Stable;

--$784.4 million class A-3 at 'AAA' Outlook Stable;

--$143.7 million class A-1A at 'AAA' Outlook Stable;

--$155.5 million class A-M at 'AAA' Outlook Stable;

--$110.8 million class A-J at 'AAA' Outlook Stable;

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

--$27.2 million class B at 'AA' Outlook Stable;

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

--$25.3 million class D at 'A' Outlook Stable;

--$11.7 million class E at 'A-' Outlook Stable;

--$13.6 million class F at 'BBB ' Outlook Stable;

--$13.6 million class G at 'BBB' Outlook Stable;

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

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

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

--$5.8 million class L at 'BB-' Outlook Stable;

--$3.9 million class M at 'B ' Outlook Stable;

--$1.9 million class N at 'B' Outlook Stable; and

--$3.9 million class O at 'B-' Outlook Stable;

Fitch does not rate the $15.5 million class P.

The affirmations are due to the pool's stable performance and limited paydown since issuance. As of the September 2008 distribution date, the pool's aggregate principal balance has decreased approximately 1% to $1.54 billion from $1.55 billion at issuance. There have been no specially serviced or delinquent loans since issuance. Year-end 2007 financials were collected for 99.9% of the pool and Fitch identified nine loans of concern (2.7%).

The largest loan in the transaction (6.2%) is secured by a 443,251 sf retail development located in Mount Pleasant, SC. The property is anchored by Barnes & Noble, Bed Bath & Beyond, Belk, and Consolidated Theaters. Major tenants include Old Navy, Earth Fare, Tweeter. The property has maintained an occupancy of greater than 95% since 2001, and is currently 96% occupied as of March 31, 2008. The debt service coverage ratio (DSCR) has improved to 1.29 times (x) from 1.22 (x) at issuance.

There are two loans (2.8%) in the transaction that are shadow rated investment grade. The London NYC Hotel Land Interest (1.8%) is collateralized by the ground leased to the London NYC Hotel, a 505-room tower located in Manhattan's Midtown submarket. Cash flow supporting the loan is received directly from the ground lease payment on a long term lease through year 2136.

The second shadow rated loan, Huron Estates (1%), is secured by an 806-unit manufactured hosing community in Romulus, MI. As of mid-year, 2008, the property is performing in-line with expectations at issuance. Occupancy as of June 2008 is 98%, a slight improvement from issuance (96%). The DSCR has improved to 2.13 times (x) from 1.97 (x) at issuance.

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