2008-08-01 23:25:02 -

- Fitch Ratings downgrades the following classes of LaSalle Commercial Mortgage Securities Trust, Series 2007-MF5 as follows:

--$7.3 million class G to 'CCC/DR2' from 'BB+';

--$2.4 million class H to 'CC/DR4' from 'BB';

--$1.8 million class J to 'C/DR6' from 'BB-';

--$1.8 million class K to 'C/DR6' from 'B';

--$1.2 million class L to 'C/DR6'

from 'B-';

--$610,000 class M to 'C/DR6' from 'B-/DR1'.

In addition, Fitch places the following classes on Rating Watch Negative:

--$407.6 million class A at 'AAA';

--$9.2 million class B at 'AA';

--$13.4 million class C at 'A';

--$8.5 million class D at 'BBB+';

--$3 million class E at 'BBB';

--$4.9 million class F at 'BBB-'.

Fitch also affirms the following class:

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

Fitch does not rate the $6.7 million class N.

The downgrades and Rating Watch Negative placements are the result of a potential for significant losses from loans currently in special servicing. Since Fitch's last rating action an additional 12 loans (3.3%) have transferred to the special servicer. In total, there are currently 28 loans (8.6%) in special servicing. Recent valuations indicate significant losses upon liquidation of the loans currently in special servicing.

The transaction is a small balance commercial mortgage backed security (CMBS) with an average loan size of $1,233,147. The majority of loans are full recourse to the sponsor and have adjustable rate mortgages with fixed-rate periods ranging from three to 10 years. Four of the top five loans (4.2%) reported year-end (YE) 2007 financials and continue to show stable performance since issuance with a YE 2007 weighted-average debt-service coverage ratio (DSCR) of 1.33x.

The largest specially serviced loan (0.8%) is secured by a multifamily property located in Del City, OK. The property is in poor condition with major deferred maintenance and is currently 46% occupied as of July 2008. The special servicer is in the process of foreclosing on the property.

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, New York
Lisa Cook, 212-908-0665
Adam Fox, 212-908-0869
or
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