MOODY'S UPGRADES THREE CLASSES AND DOWNGRADES SEVEN CLASSES OF CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP., SERIES 2001-FL2
Approximately $69.9 Million of Structured Securities Affected
New York, November 22, 2004 -- Moody's Investors Service upgraded the ratings of three classes,
downgraded the ratings of seven classes and affirmed the ratings of seven
classes of Credit Suisse First Boston Mortgage Securities Corp.,
Commercial Mortgage Pass-Through Certificates, Series 2001-FL2
-Class A-X1, Notional, affirmed at Aaa
-Class A-X2, Notional, affirmed at Aaa
-Class A-Y1, Notional, affirmed at Aaa
-Class A-Y2, Notional, affirmed at Aaa
-Class A-Y3, Notional, affirmed at Aaa
-Class A-Y4, Notional, affirmed at Aaa
-Class C, $742,679, Floating, upgraded
to Aaa from A2
-Class D, 4,581,148, Floating, upgraded
to A1 from A3
-Class E, $5,726,435, Floating,
upgraded to A3 from Baa1
-Class F, $6,871,721, Floating,
affirmed at Baa3
-Class G, $8,017,008, Floating,
downgraded to Ba2 from Ba1
-Class H, $12,758,307, Adjusted
WAC, downgraded to Ba3 from Ba2
-Class J, $5,888,352, Adjusted WAC,
downgraded to B1 from Ba3
-Class K, $5,888,352, Adjusted WAC,
downgraded to B3 from B2
-Class L, $4,906,748, Adjusted WAC,
downgraded to Caa1 from B3
-Class M, $5,888,352, Adjusted WAC,
downgraded to Caa3 from Caa2
-Class N, $1,962,573, Adjusted WAC,
downgraded to C from Ca
As of the November 18, 2004 distribution date, the transaction's
aggregate balance has decreased by approximately 85.3% to
$91.2 million from $619.1 million at securitization.
The Certificates are collateralized by five floating-rate mortgage
loans secured by commercial and multifamily properties. The mortgage
loans range in size from 2.4% of the pool to 38.4%
of the pool. One loan has been liquidated from the pool resulting
in a realized loss of $655,812. As of the November
remittance statement, unpaid but accrued interest shortfalls totaled
$1.3 million for Classes H through P.
The four largest loans, representing 77.0% of the
pool, are in special servicing and the fifth largest loan is on
the master servicer's watchlist. The specially serviced loans
are discussed below. Moody's has estimated aggregate losses
of approximately $19.4 million for all of the specially
Moody's placed Classes G, H, J, K, L, M
and N on review for possible downgrade on June 15, 2004 due to concerns
about anticipated interest shortfalls and losses from specially serviced
loans. Moody's current loan to value ratio ("LTV")
is in excess of 100.0%, compared to 97.5%
at Moody's last full review in May 2003 and 85.3%
at securitization. Although credit support has increased significantly
for all rated classes, Moody's is concerned about potential
interest shortfalls caused by special servicer's fees for the specially
serviced loans. Moody's does not anticipate that Classes
C, D or E will experience interest shortfalls going forward and
is upgrading those classes due to increased credit support. The
downgrade of Classes G through N is due to expected losses from the specially
serviced loans and interest shortfalls, which are anticipated to
occur periodically for the duration of the transaction.
The largest loan in the pool is the Hotel Royal Plaza Loan ($35.0
million - 38.4%) which is secured by a 394-room
full service hotel located in Lake Buena Vista, Florida.
The loan was transferred to special servicing in November 2001 due to
payment default. Once transferred, the borrower requested
a loan modification which was approved in October 2002. The loan
matures February 2005 and the borrower is seeking a four-year extension.
Due to significant property damage caused by the hurricanes that hit recently
Florida, the property is closed and is not expected to reopen until
early 2005. Moody's LTV is in excess of 100.0%,
similar to Moody's last review.
The second largest loan is the Dedham Executive Center Loan ($21.0
million - 23.0%) which is secured by a 180,000
square foot Class A office building located in Dedham, Massachusetts.
The loan is on the master servicer's watchlist due to a decrease
in occupancy and performance. The property is 74.0%
occupied, compared to 95.0% at securitization.
The loan matures in January 2006. Moody's LTV is in excess
of 100.0%, compared to 88.0% at last
The third largest loan is the San Tomas Business Park Loan ($17.9
million - 19.5%) which is secured by a 476,500
square foot office/flex development located in Santa Clara, California.
The loan is a participation interest (16.7%) in a loan that
totals $94.2 million. The loan was transferred to
special servicing in November 2003 due to maturity default and became
REO in May 2004. The property is currently approximately 30.0%
leased with leases for approximately 20.0% of the space
expiring in 2005. Moody's LTV is in excess of 100.0%,
compared to 97.2% at last review.
The fourth largest loan is the Main Street 200/300 Building Loan ($15.2
million - 16.7%) which is secured by a 128,000
square foot office building located in Novi, Michigan. The
loan was transferred to special servicing in January 2002 and became REO
in March 2003. The property is currently 75.0% occupied,
however a number of tenants are delinquent in their rent payments.
Moody's LTV is in excess of 100.0%, similar
to last review.
The fifth largest loan is the Lecarre Apartments Loan ($2.2
million - 2.4%) which is secured by a 48-unit
apartment complex located in a suburb of Atlanta, Georgia.
The loan was transferred to special servicing in February 2004 due to
maturity default. Moody's LTV is in excess of 100.0%,
similar to last review.
Structured Finance Group
Moody's Investors Service
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service