2008-07-18 19:43:08 -

- Fitch downgrades 1 Class of Greenwich Capital Commercial Funding Corporation, Series 2006-FL4, commercial mortgage pass-through certificates as follows:

--$17.8 MM class L to 'BB- from 'BB+';

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

--$1.4 class N-2600 'AA-';

--$2.0 million class O-2600 'A-';

--$1.3 million class P-2600 'BBB';

--$1.7 million

class Q-2600 'BBB-';

In addition, Fitch affirms the following classes:

--$170.4 million class A-1 at 'AAA';

--$230.4 million class A-2 at 'AAA';

--Interest-only class X-1 at 'AAA';

--$35.4 million class B at 'AA+';

--$30.7 million class C at 'AA';

--$18.0 million class D at 'AA-';

--$16.7 million class E at 'A+';

--$11.3 million class F at 'A';

--$15 million class G at 'A-';

--$17.6 million class H at 'BBB+';

--$14.2 million class J at 'BBB';

--$7.2 million class K at 'BBB-';

Fitch also affirms the following nonpooled trust assets (rakes) as follows:

--$2.2 million class N-MET 'BBB';

--$6.6 million class O-MET 'BBB-';

--$997,740 class N-LAX 'BBB-';

--$2.3 million class N-NZH 'BBB-';

--$1.6 million class N-NW 'A-';

--$899,005 class O-NW 'BBB+';

--$961,005 class P-NW 'BBB';

--$1.2 million class Q-NW 'BBB-';

--$770,025 class N-E161 'BBB-';

--$894,087 class N-SCR 'BBB';

--$1.4 million class O-SCR 'BBB-'; and

--$993,129 class N-WYN 'BBB-'.

The rake classes N-CPH, O-CPH, P-CPH, Q-CPH, S-CPH, N-LDC, O-LDC, P-LDC, N-LJS, N-HAP, O-HAP, P-HAP, N-444, and O-444 have paid in full.

The downgrade is a result of the Galleria Sheraton Metairie (1.35%) not performing to expectations. The hotel, located in the New Orleans MSA, was damaged by Hurricane Katrina in 2005. When re-opening in December 2005 after repairs, the hotel operated as an independent hotel and met high demand from FEMA, TSA, and other companies handling the rebuilding process of New Orleans. The hotel experienced heavy wear and tear due to the temporary nature of these guests until the current sponsors terminated the contract in April 2006. The current sponsors repaired deferred maintenance and converted the hotel to a Sheraton in August 2006. The sponsors hoped to capture more of a transient and commercial demand through the Sheraton reservation system; however the revitalization of New Orleans has been slow and demand has not met expectations. The occupancy, ADR, and RevPAR as of YE 2007 was 65%, $103, and $66, respectively, as compared to 73%, $112, and $81, respectively, at issuance. The loan matures on June 1st, 2009, and has two, 1-year extension options.

The placement of the 2600 West Olive (3.15%) rakes classes on rating watch negative is a result of the lack of leasing at the property. The property experienced significant vacancy in 2004 when Disney vacated 80% of the net rentable area. As of April 2008, the property was 46% occupied. The loan matures on December 1st, 2008, and has two, 1-year extension options. If performance does not improve in the near future, multiple notch downgrades are possible as stabilization has been slower than expected and the local market outlook for rental rates and occupancy is less favorable than at the time of issuance.

The affirmations are due to expected performance since issuance. As of the July 2008 remittance, the transaction has paid down by 40.2%. Twelve loans have paid in full. There are no specially serviced loans, and all loans are current.

The transaction consists of loans collateralized by hotel properties (44.8%), office (35.8%), retail (10.8%), condominium conversion (4.4%), multifamily (2.9%) and mixed use (1.3%). At issuance, 15.3% of the pool was collateralized by condominium conversion loans and 3.6% by land.

The largest loan remaining in the transaction is Metropolitan Tower (13%). The loan is secured by the condominium ownership of the first 18 stories of a 66-story office & residential building located on West 57th Street between 6th and 7th Avenue in Manhattan. The property has been undergoing renovations. As the building was over 60% vacant a year and half ago and is now 29% vacant, each vacant floor has been demolished and either built as leases were signed or the space is being pre-built. The property continues to perform inline with the business plan presented at issuance. The loan matures on November 9th, 2009, and has two, 1-year extension options.

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
Chris Bushart, +1-212-908-0606 (New York)
Britt Johnson, +1-312-606-2341 (Chicago)
Sandro Scenga, +1-212-908-0278
(Media Relations, New York)