2008-10-30 21:30:01 -
- Fitch Ratings has affirmed and assigned Ratings Outlooks to CGCMT 2007-C6 Mortgage Trust, commercial mortgage pass-through certificates, as follows:
-- $146.9 million class at A-1 'AAA'; Outlook Stable;
-- $259 million class A-2 at 'AAA'; Outlook Stable;
-- $387 million class A-3 at 'AAA'; Outlook Stable;
-- $126.3 million class A-3B at 'AAA'; Outlook Stable;
-- $140 million class A-SB at 'AAA'; Outlook Stable;
-- $1.573 billion class A-4 at 'AAA'; Outlook Stable;
-- $200 million class A-4FL at 'AAA'; Outlook Stable;
-- $488.9 million class A-1A at 'AAA'; Outlook Stable;
-- $425.6 million class A-M at 'AAA'; Outlook Stable;
-- $50 million class A-MFL at 'AAA'; Outlook Stable;
-- $248.3 billion class A-J at 'AAA'; Outlook Stable;
-- $150 million class A-JFL at 'AAA'; Outlook Stable;
-- Interest-only class X at 'AAA'; Outlook Stable;
-- $23.8 million class B at 'AA+'; Outlook Stable;
-- $71.3 million class C at 'AA'; Outlook Stable;
-- $35.7 million class D at 'AA-'; Outlook Stable;
-- $29.7 million class E at 'A+'; Outlook Stable;
-- $35.7 million class F at 'A'; Outlook Stable;
-- $47.6 million class G at 'A-'; Outlook Stable;
-- $53.5 million class H at 'BBB+'; Outlook Stable;
-- $65.4 million class J at 'BBB'; Outlook Stable;
-- $53.5 million class K at 'BBB-'; Outlook Negative;
-- $11.9 million class L at 'BB+'; Outlook Negative;
-- $11.9 million class M at 'BB'; Outlook Negative;
-- $17.8 million class N at 'BB-'; Outlook Negative;
-- $11.9 million class O at 'B+'; Outlook Negative;
-- $5.9 million class P at 'B'; Outlook Negative;
-- $5.9 million class Q at 'B-'; Outlook Negative.
Fitch does not rate the $71.3 million class S certificates.
The affirmations reflect limited scheduled amortization and stable performance since issuance. The Rating Outlooks reflect the likely direction of ratings over the next one to two years. As of the September 2008 distribution date the transaction's outstanding principal balance has been reduced by 0.2% to $4.75 billion from $4.76 billion at issuance.
Fitch has identified 15 loans of concern (5.25% of the pool), five of which are specially serviced loans (0.47%). The largest specially serviced loan (0.16%) is collateralized by an extended-stay hotel in Pensacola, FL. The property had been a major provider of off-base housing for the military until August 2007, when the U.S. Navy notified the borrower that it had sufficient on-base housing.
The second largest specially serviced loan (0.16%) is collateralized by an 81,200 square foot (SF) retail property in Gilbert, AZ. The property is 100% leased by Mervyn's, which is in bankruptcy and recently announced that it would be closing all of its stores by early next year. Fitch expects losses to be absorbed by the non-rated class S.
The largest loan of concern, the Hyde Park Apartment Portfolio (2.6%), is a 43 building multifamily portfolio with 951 units located in the Hyde Park neighborhood of Chicago, IL. The property is undergoing a three-phase renovation, which is not expected to be completed until spring 2010. Cash flow is insufficient to cover debt service given low occupancy levels while units are being renovated as well as high operating expenses. The servicer reported year-end (YE) 2007 debt service coverage ratio (DSCR) was 0.10 times (x). Interest reserves have been depleted, but the loan remains current.
Fitch reviewed year-end (YE) 2007 operating statement analysis reports for the transaction's three shadow rated loans (3.9%): Ala Moana Portfolio (2.1%), IAC - California & Washington Industrial Portfolio (1%), and IAC - Oregon Industrial Portfolio (0.7%). The loans are performing as expected and maintain their investment grade shadow ratings.
The largest shadow rated loan, Ala Moana Portfolio (2.1%), is secured by the fee interest in a 1.9 million SF retail and office development in Honolulu, HI. Ala Moana Center is one of the most productive retail assets in the nation, with sales for in-line tenants consistently exceeding $1,000 per square foot. The retail portion of the collateral is occupied by nearly 275 tenants, while the office portion is occupied by 184 tenants. The mall is sponsored and operated by General Growth Properties. Occupancy as of December 2007 was 94%, in-line with 93.5% at issuance.
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.
Fitch Ratings
Linda Hammel, +1-212-908-0303 (New York)
Britt Johnson, +1-312-606-2341 (Chicago)
Sandro Scenga, +1-212-908-0278
(Media Relations, New York)
sandro.scenga@fitchratings.com 
