Fitch Downgrades 2 Classes of BSCMSI 2005-TOP 18

NEW YORK--()--Fitch Ratings has downgraded two classes and affirmed 15 classes of Bear Stearns Commercial Mortgage Securities Inc. Commercial Mortgage Pass-Through Certificates Series 2005-TOP18. A detailed list of rating actions follows at the end of this press release.

Key Rating Drivers:

The downgrades reflect updated valuations for specially serviced loans in the pool. Fitch modeled losses of 4.2% of the remaining pool; expected losses on the original pool balance total 2.9%. The pool has experienced $11.5 million (1.0% of the original pool balance) in realized losses to date. Fitch has designated 23 loans (12.5%) as Fitch Loans of Concern, which includes six specially serviced assets (3.4%).

As of the December 2012 distribution date, the pool's aggregate principal balance has been reduced by 30.6% to $778.6 million from $1.12 billion at issuance. Per the servicer reporting, six loans (13.8% of the pool) have defeased since issuance. Interest shortfalls are currently affecting classes K through P.

The largest contributor to expected losses (0.6% of the pool) is secured by a specially-serviced 116,380 sf retail property located in Whiting, NJ. The loan transferred to special servicer in July 2009 due to imminent default. Borrower was unable to meet debt service obligations due to delinquent rents from two inline tenants and anchor tenant. Special servicer pursued sale through receivership with receiver sale completed in June 2012 for the majority of the property. Remaining parcel (1.1 acres including 3,003 sf NRA) foreclosed in November 2012. This parcel is all that remains as collateral in the transaction.

The next largest contributor to expected losses (1.2%) is a specially-serviced 155,462 sf office property located in Inglewood, CA. A receiver was appointed and took possession of the property in September 2012. Foreclosure sale is scheduled for the end of January 2013.

Fitch downgrades the following classes and assigns or revises Rating Outlooks as indicated:

--$12.6 million class D to 'BBsf' from 'BBB-sf'; Outlook to Stable from Negative;

--$11.2 million class E to 'Bsf' from 'BBsf'; Outlook to Stable from Negative.

Fitch affirms the following classes and assigns or revises Rating Outlooks and REs as indicated:

--$74.3 million class A-J at 'AAAsf'; Outlook to Negative from Stable;

--$29.4 million class B at 'Asf'; Outlook to Negative from Stable;

--$9.8 million class F at 'CCCsf'; RE 100%;

--$9.8 million class G at 'CCsf'; RE 90%.

Fitch affirms the following classes as indicated:

--$7.2 million class A-AB at 'AAAsf'; Outlook Stable;

--$517.2 million class A-4 at 'AAAsf'; Outlook Stable;

--$75 million class A-4FL at 'AAAsf'; Outlook Stable;

--$8.4 million class C at 'BBBsf'; Outlook Stable;

--$8.4 million class H at 'Csf'; RE 0%;

--$4.2 million class J at 'Csf'; RE 0%;

--$4.2 million class K at 'Csf'; RE 0%;

--$4.2 million class L at 'Csf'; RE 0%;

--$1.4 million class M at 'Csf'; RE 0%;

--$1.1 million class N at 'Dsf'; RE 0%;

--$0 class O at 'Dsf'; RE 0%.

The class A-1, A-2 and A-3 certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 21, 2011 report, 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21, 2011).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

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Contacts

Fitch Ratings
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Martin Nunnally, +1-212-908-0871
Associate Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
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Media Relations
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sandro.scenga@fitchratings.com