Fitch Affirms DLJ 1999-CG1

Fitch Ratings has affirmed three classes of DLJ Commercial Mortgage Corp., commercial mortgage pass-through certificates series 1999-CG1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmation of class B-6 reflects increasing credit enhancement from continued paydown. The affirmations of class B-7 and B-8 reflect losses already realized.

As of the April 2016 distribution date, the pool's aggregate principal balance has been reduced by 98.9% to $14.1 million from $1.24 billion at issuance. The pool is concentrated with only two loans remaining, both of which have been designated as Fitch Loans of Concern for occupancy and/or debt service coverage ratio (DSCR) declines. The largest loan (50.5%) is fully amortizing and the other (49.5%) is a 20 year balloon loan. Both loans have remained current throughout their terms and have not been modified.

The largest loan in the pool is The Links at Bixby (50.5%), which is secured by a garden style multifamily property consisting of 324 units located in Bixby, OK, near Tulsa. In February 2016, the property sustained fire damage to 11 units in building 7725. These units are undergoing repairs, and per the master servicer, the estimated completion date is July 2016. The most recent occupancy figure was 99% as of the first quarter of 2016 (1Q16); however, the fire damage will have a short-term impact on occupancy while renovations are taking place. The loan is fully amortizing and matures in March 2023; however, the prepayment penalty expires in 2018.

The second loan, The Shoppes at Longwood (49.5%), is secured by a 141,940 square foot (sf) retail property located in Kennett Square, PA. The largest tenants include T.J. Maxx (17%), expiration Jan. 31, 2019; and Staples (13%), expiration Nov. 30, 2017. A&P, the parent of Super Fresh Grocery (32% NRA), filed Chapter 11 bankruptcy in July 2015. They vacated in September 2015. As of year-end 2015, the property's occupancy declined to 65% from 100% at year-end 2014. Per the master servicer, the borrower is negotiating with several tenants in an effort to release the space. The loan matures in January 2019 with an open period beginning in November 2018.

RATING SENSITIVITIES

The rating on class B-6 is expected to remain stable given the concentration with only two loans remaining. Future affirmations are likely given the concentration and collateral quality of the remaining loans. In the unlikely event one or both of the loans default, downgrades are possible if significant losses are expected. Classes B-7 and B-8 will remain at 'Dsf' as losses have been realized.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

--$6 million class B-6 at 'BBsf', Outlook Stable;

--$8.1 million class B-7 at 'Dsf', RE 80%;

--$0 class B-8 at 'Dsf', RE 0%.

The class A-1A, A-1B, A-2, A-3, A-4, B-1, B-2, B-3, B-4 and B-5 certificates have paid in full. Fitch does not rate the class C certificates. Fitch previously withdrew the rating on the interest-only class S certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 28 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1004054

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1004054

Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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