Fitch Upgrades 1 Class of CMSC 1999-2

Fitch Ratings has upgraded one class and affirmed one class of Chase Commercial Mortgage Securities Corporation (CMSC) commercial mortgage pass-through certificates, series 1999-2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade and affirmation reflect sufficient credit enhancement to offset the concentrated pool as only four of the original 92 loans remain. Fitch has not designated any of the four loans as Fitch Loans of Concern and no loans are in special servicing at this time. As of the October 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.1% to $14.7 million from $782.7 million at issuance. Per the servicer reporting, one loan (34.2% of the pool) is defeased. Interest shortfalls are currently affecting class M.

The largest remaining loan is secured by a 62,042 square foot office property in Los Gatos, CA. The property is currently 100% occupied; however, the net operating income debt service coverage ratio (NOI DSCR) continues to remain low at 0.92x for the year-to-date June 2014 period. A primary driver for the sub-performance is the loan repayment structure; the loan is currently on a fully amortizing payment schedule at a note rate of 8.6%. Payments have remained current despite the low DSCR for multiple years.

RATING SENSITIVITIES

The Rating Outlooks on class K and L are Stable as affirmations are expected due to the likelihood of full principal recovery. No further upgrades to either class are warranted at this time given that both classes have experienced interest shortfalls previously as well as the vulnerability to potential interest shortfalls in the future for class L. Fitch will not assign or maintain 'AAAsf' or 'AAsf' ratings for notes that it believes have a high level of vulnerability to interest shortfalls or deferrals, even if permitted under the terms of the documents (see 'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions', dated May 28, 2014, for more details).

Fitch upgrades the following class and revises the Rating Outlook as indicated:

--$5.9 million class L to 'Asf' from 'B-sf', Outlook revised to Stable from Negative.

Fitch affirms the following class as indicated:

--$4 million class K at 'Asf', Outlook Stable.

The class A-1, A-2, B, C, D, E, F, G, H, I and J certificates have paid in full. Fitch does not rate the class M certificate and Fitch previously withdrew the rating on the interest-only class X certificate.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

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:

Global Structured Finance Rating Criteria

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

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=911394

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