Fitch affirms DLJ Commercial Mortgage Corp.'s commercial mortgage pass-through certificates, series 1998-CF1 as follows:
--Interest-only classes CP and S at 'AAA';
--$6.0 million class B-1 at 'AAA';
--$10.0 million class B-3 at 'AAA';
--$27.1 million class B-4 at 'AA+';
--$6.3 million class B-7 at 'B-'.
Fitch does not rate the $14.7 million class B-2, $15 million class B-5, $15 million class B-6 or $10.2 million class C certificates. Class A-1A, A-1B, A-2, and A-3 are paid in full.
Affirmations are due to the stable performance of the pool. As of the July distribution date, the pool's aggregate certificate balance has been reduced 87.6% to $104.3 million from $838.8 million at issuance. Of the remaining 29 loans, three (8.5%) are fully defeased. The pool has 72.8% exposure to 21 retail properties.
The third largest asset is currently in special servicing (8.5%) and is real estate owned (REO). The asset is secured by a retail property located in Decatur, GA. The center is anchored by a Kroger grocery store which exercised their five year renewal option until 2013. The Kmart and Hardees space remains vacant. The property is currently 51% occupied and the leasing broker continues to market the vacant space. Losses are expected upon disposition of the asset and should be absorbed by the non-rated class C.
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.
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Sue Ann Butera, 212-908-0713
Adam Fox,
212-908-0869
or
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212-908-0278
