7 Securities Classes Of Bear Stearns Ranked Negative By Fitch

Fitch Ratings downgrades the following classes of Bear Stearns Commercial Mortgage Securities Inc. commercial mortgage pass through certificates, series 2005 TOP18 $9.8 million class G to 'BBB ' from 'BBB' Outlook Negative $8.4 million class H to 'BB+' from 'BBB

By None

Fitch Ratings downgrades the following classes of Bear Stearns Commercial Mortgage Securities Inc. commercial mortgage pass-through certificates, series 2005-TOP18:

–$9.8 million class G to ‘BBB-‘ from ‘BBB’; Outlook Negative;

–$8.4 million class H to ‘BB+’ from ‘BBB-‘; Outlook Negative;

–$4.2 million class J to ‘BB’ from ‘BB+’; Outlook Negative;

–$4.2 million class K to ‘BB-‘ from ‘BB’; Outlook Negative;

–$4.2 million class L to ‘B+’ from ‘BB-‘; Outlook Negative;

–$1.4 million class M to ‘B’ from ‘B+’; Outlook Negative;

–$1.4 million class N to ‘B-‘ from ‘B’; Outlook Negative.

Fitch also downgrades and assigns a Distressed Recovery rating to the following class:

–$2.8 million class O to ‘CCC/DR1’ from ‘B-‘.

In addition, Fitch affirms and assigns Outlooks as follows:

–$17 million class A-1 at ‘AAA’; Outlook Stable;

–$121.9 million class A-2 at ‘AAA’; Outlook Stable;

–$41.6 million class A-3 at ‘AAA’; Outlook Stable;

–$105.7 million class A-AB at ‘AAA’; Outlook Stable;

–$517.2 million class A-4 at ‘AAA’; Outlook Stable;

–$75 million class A-4FL at ‘AAA’; Outlook Stable;

–$74.3 million class A-J at ‘AAA’; Outlook Stable;

–Interest-only class X at ‘AAA’; Outlook Stable;

–$29.4 million class B at ‘AA’; Outlook Stable;

–$8.4 million class C at ‘AA-‘; Outlook Stable;

–$12.6 million class D at ‘A’; Outlook Stable;

–$11.2 million class E at ‘A-‘; Outlook Stable;

–$9.8 million class F at ‘BBB+’; Outlook Negative.

Fitch does not rate the $8.4 million class P.

The downgrades are the result of Fitch loss expectations on two loans (0.5%) transferred to special servicing in February 2009. As of the February 2009 distribution date, the pool’s aggregate certificate balance has decreased 4.7% to $1.07 billion from $1.12 billion at issuance.

The Rating Outlooks reflect the likely direction of any rating changes over the next one or two years. The assignment of the Negative Outlooks is due to near-term maturity risk, as approximately 12% of the pool matures in the next 12 months. The weighted average interest rate of these loans is approximately 5%. In addition, the property has a high concentration of retail properties (43%).

There are currently 12 Fitch Loans of Concern (3.2%), including the two loans in special servicing. The largest specially serviced asset (0.4%) is an industrial property located in City of Industry, CA. The loan is current through February 2009, but the borrower has advised the special servicer that it is unable to continue to make scheduled debt service payments without a modification of the loan. The property’s tenant, which had occupied the entire property, vacated in July 2008.

The largest Loan of Concern (0.7%) is an industrial property located in Maspeth, NY. The master servicer has indicated that the loan may be potentially transferred to the special servicer for delinquency.

At issuance, there were nine shadow rated loans (24.4%); 111-115 Fifth Avenue, Boulevard at the Capital Center, Chateau on the Lake, Capitol Arms Apartments, Watertown Mall, 340 East 93rd Street Co-op, Dal-Rich Village, Holiday Inn Express Midtown and 3200 Liberty Avenue. These loans maintain their investment-grade shadow rating based on stable performance. Fitch will review the year-end (YE) 2008 financials for these loans once they become available.

L.D.

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