Fitch Ratings has downgraded one class and affirmed seven classes of Credit Suisse Commercial Mortgage Trust (CSMC) series 2007-C1 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are based on relatively stable overall performance of the pool since the last rating action. Fitch modelled losses of 14.2% of the remaining pool; expected losses on the original pool balance total 20.5%, including $368.2 million (10.9% of the original pool balance) in realized losses to date. Fitch has designated 30 loans (26.8%) as Fitch Loans of Concern, which includes eight specially serviced assets (3.7%). One loan (1.8%), the Syracuse Office Portfolio, has been liquidated from the trust for losses since the December 2015 distribution. Losses are expected to mostly deplete class B. The downgrade to class A-J is based on a greater certainty of losses.

As of the December 2015 distribution date, the pool's aggregate principal balance has been reduced by 36.8% to $2.13 billion from $3.37 billion at issuance. The deal is concentrated by property type, with 36.9% of the pool secured by multifamily properties, 22.4% by office assets, and 16.8% by retail properties. The remaining loans have maturity dates in the second half of 2016 (38.5%), first-quarter 2017 (43.4%), fourth-quarter 2017 (11.1%), and 2018 (7.0%), with 0.4% being anticipated repayment date (ARD) loans. Thirteen loans (3.6%) are defeased.

The largest contributor to Fitch's modeled losses is the City Place (7.0%) loan, collateralized by a 731,886 square foot (sf) mixed-use center located in West Palm Beach, FL. The loan was transferred to the special servicer in April 2010 and a modification consisting of an A/B note structure was completed in January 2012 with an A note of $100 million and a B note of $50 million. The loan was returned to the master servicer in August 2012. Performance declined to a low point during third quarter 2015 with occupancy of 81% compared to 95% at issuance and a debt service coverage ratio (DSCR) of 1.08x based on the A note balance. However, several major retail tenants have renewed leases over the past 12 months and the sponsor is upgrading the mixed-use development through capital improvements. In addition, the sponsor recently completed a hotel directly adjacent to the property with the intention of increasing retail traffic at the subject. Fitch losses are based on current cashflow with a stressed cap rate. The loan's extended maturity date is in December 2018.

The second largest contributor to modeled losses is Savoy Park (9.9%). The loan is secured by a multifamily complex consisting of 1,802 units, located in the Harlem neighborhood of New York City. The loan was previously in special servicing beginning in July 2010 due to imminent default; it was assumed by the mezzanine lender and a loan modification was completed in 2012. The loan returned to the master servicer in March 2013 and remains current. The modification includes an A/B note split of a $160 million A note and $50 million B note, and an extension to Dec. 11, 2017. Per the master servicer, the complex's third quarter 2015 occupancy rate is 97%. Performance has steadily improved since the modification with the DSCR at 1.4x as of third quarter 2015. Fitch losses are based on current cashflow and a stressed cap rate.

The third largest contributor to Fitch's model losses is Wells Fargo Place (4.2%), a 656,302 sf urban office building located in St. Paul, MN. The loan was transferred to the special servicer in October 2010 for imminent payment default due to cashflow issues. The loan was modified and returned to the master servicer in May 2011 after restructured forbearance which included releasing building improvement reserves for general leasing expenditures. Property performance has been steady since returning to the master servicer; third quarter 2015 occupancy was 85% compared with 88% at year-end 2013. The sponsor continues to aggressively market the space and has renewed a number of large tenants during the past year. Fitch losses are based on current cashflow and a stressed cap rate.

RATING SENSITIVITIES

The Rating Outlook remains Negative for the A-M, A-MFL, and A-MFX classes given the continued underperformance of loans in the top 15. These classes may be downgraded if the transaction experiences an increase in the number of specially serviced loans, or expected losses on the existing specially serviced loans or performing loans increase. The distressed class A-J will be downgraded as losses are realized.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch downgrades the following class:

--$286.6 million class A-J to 'Csf' from 'CCsf'; RE 0%.

Fitch affirms the following classes:

--$7.5 million class A-AB at 'AAAsf'; Outlook Stable;

--$589.6 million class A-3 at 'AAAsf'; Outlook Stable;

--$891.1 million class A-1A at 'AAAsf'; Outlook Stable;

--$212.1 million class A-M at 'Bsf'; Outlook Negative;

--$90 million class A-MFL at 'Bsf'; Outlook Negative;

--$35 million class A-MFX at 'Bsf'; Outlook Negative;

--$19.6 million class B at 'Dsf'; RE 0%.

Classes C, D, E, F, G, H, J, K, L, M, N, O, P, Q, and S are affirmed at 'Dsf'/RE 0%. These classes have been reduced to zero due to realized losses.

Classes A-1 and A-2 have paid in full. Class T is not rated. Fitch has previously withdrawn the ratings in the interest-only classes A-SP and A-X.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997770

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997770

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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