2008-12-04 22:54:04 -
Fitch Ratings has upgraded Morgan Stanley Capital, Inc.'s commercial mortgage pass-through certificates, series 1997-WF1, as follows:
--$8.4 million class H to 'AAA' from 'AA-'; Outlook Stable.
In addition, Fitch has affirmed the following classes:
--Interest-only (IO) class X-1 at 'AAA'; Outlook Stable;
--$797,784 class G at 'AAA'; Outlook Stable;
--$8.4
million class J at 'B'; Outlook Stable.
Fitch does not rate the $2.9 million class K. Classes A-1, A-2, X-2, B, C, D, E and F have been paid in full. The Stable Outlooks reflect the unlikely movement of any ratings over the next one to two years.
The upgrade is a result of additional pay down and stable performance since Fitch's last rating action. As of the November 2008 distribution date, the pool's aggregate collateral balance has been reduced 96.3% to $20.5 million from $559.2 million at issuance. Of the original 126 loans, only nine remain. The remaining pool is comprised of 32% retail, 28.3% office, 25.7% hotel and 14% multifamily properties.
The largest loan (29.8%) is collateralized by an office property in Madison, WI. Occupancy as of Dec. 31, 2007, has remained stable at 100% since issuance.
The second largest loan (27.1%) is collateralized by a hotel in San Diego, CA. As of Dec. 31, 2007, occupancy is 78% compared to 86.4% at issuance.
The third largest loan (15.3%) is collateralized by a retail property in Phoenix, AZ. Occupancy as of Dec. 31, 2007, has remained stable at 100% since issuance.
The servicer reported weighted average debt service coverage ratio for the remaining loans is 2.11 times (x) and eight (72.8%) of the nine remaining loans are fully amortizing. The weighted average coupon for the remaining loans is 8.771%. No loans mature until November 2011.
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
Chris Bushart, 1-212-908-0606
Adam Fox, 1-212-908-0869
Sandro Scenga, +1-212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com 
