DBRS Morningstar Downgrades One Class of Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP26

DBRS Limited (DBRS Morningstar) downgraded the rating of one class of the Commercial Mortgage Pass-Through Certificates, Series 2007-TOP26 issued by Bear Stearns Commercial Mortgage Securities Trust, Series 2007-TOP26 (the Trust):

-- Class D to D (sf) from C (sf)

In conjunction with this rating action, DBRS Morningstar also removed the Interest in Arrears designation on Class D.

The downgrade to Class D is the result of the most recent realized loss to the Trust, which occurred with the resolution of four loans with the September 2019 remittance. Thomson Campus (Prospectus ID #47), Indrio Crossings Shopping Center (Prospectus ID #55), Bridgeport Stop & Shop II (Prospectus ID #58) and Magnolia Pointe Shopping Center (Prospectus ID #114) were liquidated from the Trust at a loss of $10.6 million, $4.1 million, $8.0 and $1.9 million, respectively. All four loans had been specially serviced since 2017 and were unable to secure refinancing as each loan was in maturity default. The loss wiped the remaining balance on Class E and reduced the principal balance on Class D by 33.3%.

As of the October 2019 remittance, there are eight loans remaining in the pool (current Trust balance of $283.5 million), one of which is in special servicing.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS Morningstar.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology, which can be found on www.dbrs.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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