Approximately $200.8 Million of Structured Securities Affected
New York, February 17, 2010 -- Moody's Investors Service (Moody's) placed 13 classes of Credit Suisse
First Boston Mortgage Securities Corp., Commercial Mortgage
Pass-Through Certificates, Series 2004-C3 on review
for possible downgrade due to higher expected losses for the pool resulting
from anticipated losses from loans in special servicing and increased
credit quality dispersion for the remainder of the pool. The rating
action is the result of Moody's on-going surveillance of
commercial mortgage backed securities (CMBS) transactions.
As of the January 15, 2010 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 20%
to $1.30 billion from $1.64 billion at securitization.
The Certificates are collateralized by 157 mortgage loans ranging in size
from less than 1% to 11% of the pool, with the top
ten loans representing 34% of the pool. Twenty-four
loans, representing 26% of the pool, have defeased
and are secured by U.S. Government securities.
Twenty-seven loans, representing 12% of the pool,
are on the master servicer's watchlist. The watchlist includes
loans which meet certain portfolio review guidelines established as part
of the Commercial Mortgage Securities Association's (CMSA) monthly
reporting package. As part of our ongoing monitoring of a transaction,
Moody's reviews the watchlist to assess which loans have material
issues that could impact performance.
Five loans have been liquidated from the pool, resulting in an aggregate
$16.4 million realized loss (48% loss severity).
Twenty loans, representing 13% of the pool, are currently
in special servicing. At Moody's last review five loans,
representing 3% of the pool, were in special servicing.
Moody's review will focus on the performance of the overall pool
and potential losses from specially serviced loans and other troubled
loans.
Moody's rating action is as follows:
-Class B, $45,084,000, currently
rated Aa2, placed on review for possible downgrade; previously
assigned at Aa2 on 10/25/2004
-Class C, $14,345,000, currently
rated Aa3, placed on review for possible downgrade; previously
assigned at Aa3 on 10/25/2004
-Class D, $28,690,000, currently
rated A2, placed on review for possible downgrade; previously
assigned at A2 on 10/25/2004
-Class E, $16,395,000, currently
rated A3, placed on review for possible downgrade; previously
assigned at A3 on 10/25/2004
-Class F, $20,493,000, currently
rated Baa1, placed on review for possible downgrade; previously
assigned at Baa1 on 10/25/2004
-Class G, $16,394,000, currently
rated Baa2, placed on review for possible downgrade; previously
assigned at Baa2 on 10/25/2004
-Class H, $22,542,000, currently
rated Baa3, placed on review for possible downgrade; previously
assigned at Baa3 on 10/25/2004
-Class J, $8,198,000, currently
rated Ba1, placed on review for possible downgrade; previously
assigned at Ba1 on 10/25/2004
-Class K, $6,147,000, currently
rated Ba2, placed on review for possible downgrade; previously
assigned at Ba2 on 10/25/2004
-Class L, $8,198,000, currently
rated Ba3 placed on review for possible downgrade; previously assigned
at Ba3 on 10/25/2004
-Class M, $6,148,000, currently
rated B1, placed on review for possible downgrade; previously
assigned at B1 on 10/25/2004
-Class N, $6,147,000, currently
rated Caa1, placed on review for possible downgraded; previously
downgraded to Caa1 from B2 on 3/10/2008
-Class O, $2,050,000, currently
rated Caa2, placed on review for possible downgrade; previously
downgraded to Caa2 from B3 on 3/10/2008
Moody's monitors transactions on a monthly basis through two sets of quantitative
tools -- MOST® (Moody's Surveillance Trends) and CMM
(Commercial Mortgage Metrics) on Trepp -- and on a periodic
basis through a comprehensive review. Moody's prior review is summarized
in a Press Release dated March 10, 2008.
The principal methodology used in rating and monitoring this transaction
is "CMBS: Moody's Approach to Rating U.S. Conduit
Transactions" published September 15, 2000, which is available
on www.moodys.com in the Rating Methodologies sub-directory
under the Research & Ratings tab. Other methodologies and factors
that may have been considered in the process of rating this transaction
can also be found in the Rating Methodologies sub-directory on
Moody's website. In addition, Moody's publishes a weekly
summary of structured finance credit, ratings and methodologies,
available to all registered users of our website, at www.moodys.com/SFQuickCheck.
New York
Sandra Ruffin
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Michael M. Gerdes
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Places 13 CMBS Classes of CSFB 2004-C3 on Review for Possible Downgrade