OREANDA-NEWS. S&P Global Ratings today loweredits rating to 'D (sf)' from 'B - (sf)' on the class D commercial mortgage pass-through certificates from Morgan Stanley Capital I Trust 2006-IQ11, a U. S. commercial mortgage-backed securities (CMBS) transaction.

The downgrade reflects principal losses as detailed in the September 2016 trustee remittance report.

The Sept. 15, 2016, trustee remittance report reported $14.9 million in principal losses, which resulted primarily from the liquidations of two specially serviced assets: Merritt Square Mall and Pines of Wilmington. According to the trustee remittance report, Merritt Square Mall liquidated at a loss severity of 27.0% of its original balance, and Pines of Wilmington liquidated at a loss of 0.9% of its original balance. Offsetting the losses are recoveries of $0.6 million from the Capital Plaza loan, which was liquidated in June 2016. Consequently, class D experienced a 8.5% loss of its $22.2 million original principal balance, and the remaining losses were allocated to class E (not rated by S&P Global Ratings).