Fitch Downgrades Two Distressed Classes of Bear Stearns 2006-TOP 22

Fitch Ratings has downgraded two classes of Bear Stearns Commercial Mortgage Securities Trust (BSCMST), series 2006-TOP22 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The downgrades of BSCMST, Series 2006-TOP22 are based on the increase in realized losses due to specially serviced loan liquidations since the last annual review. The pool's aggregate principal balance has been reduced by 33.5% to $1.133 billion from $1.705 billion at issuance. Fitch modeled losses of 4.41% of the remaining pool; expected losses on the original pool balance are 4.1%, which includes 1.17% in realized losses to date. Fitch designated 28 loans (15.2%) as Fitch Loans of Concern, which include three specially serviced loans (1.7%).

The largest contributor to Fitch's modeled losses is Rolling Meadows Shopping Center (1.5% of the pool), a 130,436 square foot (sf) anchored retail center located in Rolling Meadows, IL. The subject was built in 1956 and renovated in 1990. The property is located 28 miles northwest of the Chicago central business district in the suburban submarket of Arlington Heights. The center has experienced performance issues for the past year due to increased expenses and decreased occupancy. Although the sponsor has increased occupancy to 89%, from a 2012 low of 80%, the center is still below the issuance high of 98%. Near-term performance of the asset will be driven by the sponsor's ability to renew anchor tenants during the next 18 months at market rates.

The second largest contributor to Fitch's modeled losses is the specially serviced Gateway Business Center (0.83%), an 117,500 sf suburban office building located in Melbourne, FL. The occupancy rate at the subject is 69% with a large amount of tenants and net rental area scheduled to expire in the next 18 months. The special servicer completed a review of the property and is proceeding with judicial foreclosure proceedings. The motion to appoint a receiver was filed in early June and special servicer is awaiting a judgment as it pursues its legal remedies.

The third largest contributor to Fitch's modeled losses is Lake Buena Vista Courtyard by Marriott (1.2%), a 308-room full-service, Marriott-flagged hotel, located in Orlando, FL. The resort faces strong competition from the large number of properties in the sub-market which cater exclusively to the same customer segment. Performance has started to recover with the resurgence of activity at Walt Disney World and Universal Studio. Occupancy rose to 71% during the first half of 2014, which is just below the 72% that was last reached at issuance.

RATINGS SENSITIVITY

The Rating Outlook remains Negative for the D and E classes. These classes could experience negative ratings migration if the transaction experiences an increase in the number of specially serviced loans or expected losses increase.

Fitch downgrades the following classes as indicated:

--$2.1 million class K to 'Csf' from 'CCsf'; RE0%;

--$2.9 million class L to 'Dsf' from 'Csf'; RE0%.

Fitch affirms the following classes as indicated:

--$542.3 million class A-4 at 'AAAsf'; Outlook Stable;

--$155.5.1 million class A-1A at 'AAAsf'; Outlook Stable;

--$170.5 million class A-M at 'AAAsf'; Outlook Stable;

--$125.7 million class A-J at 'AAsf'; Outlook Stable;

--$32 million class B at 'Asf'; Outlook Stable;

--$12.8 million class C at 'BBBsf'; Outlook Stable;

--$25.6 million class D at 'BBsf'; Outlook Negative;

--$14.9 million class E at 'Bsf'; Outlook Negative;

--$14.9 million class F to 'CCCsf'; RE 70%;

--$14.9 million class G at 'CCCsf'; RE0%;

--$8.5 million class H at 'CCsf'; RE0%;

--$10.7 million class J at 'CCsf'; RE0%;

--$0 million class M at 'Dsf'; RE0%;

--$0 million class N at 'Dsf'; RE0%;

--$0 million class O at 'Dsf'; RE0%;

Fitch does not rate the $0.0 million class P. Classes A-1, A-2, and A-3 and A-AB have repaid in full. Classes M through O and the unrated class P have been reduced to zero due to losses realized on loans liquidated from the trust. Fitch previously withdrew the rating on the interest-only class X.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=855594

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