OREANDA-NEWS. Fitch Ratings has upgraded three classes and affirmed seven classes of Bear Sterns Commercial Mortgage Securities Trust commercial mortgage pass-through certificates series 2003-PWR2 (BS 2003-PWR2). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades reflect the relatively stable performance of the pool and realized losses from a specially serviced loan that were lower than expected. Fitch modeled losses of 5% of the remaining pool; expected losses on the original pool balance total 0.9%, including \$6.6 million (0.6% of the original pool balance) in realized losses to date. Fitch has designated two loans (12%) as Fitch Loans of Concern, which does not include any specially serviced loans.

As of the January 2015 distribution date, the pool's aggregate principal balance has been reduced by 93.4% to \$70 million from \$1.07 billion at issuance. Per the servicer reporting, one loan (1% of the pool) is defeased. Interest shortfalls are currently affecting classes N through P.

The largest loan in the pool is the \$52.7 million (49.5% of pool) pari passu portion of 3 Times Square (totaling \$89.8 million). The loan is fully amortizing through its October 2021 maturity date and is secured by a 883,405 square foot 30-story class-A office building located in Manhattan. Built in 2001, the property's major tenants include Thomson Reuters, BMO Harris Bank and JP Morgan Chase. As of September 2014, the debt service coverage ratio was reported to be 1.76x. Occupancy has been 100% for the past several years.

RATING SENSITIVITIES

Rating Outlooks on classes D through H remain Stable due to increasing credit enhancement as the transaction continues to delever. Rating Outlooks on classes J and K are revised to Stable from Positive as minimal losses are expected from the remaining loans.

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

--\$5.3 million class K to 'BBsf' from 'Bsf', Outlook to Stable from Positive;
--\$4 million class L to 'Bsf' from 'CCCsf', Outlook Stable assigned;
--\$5.3 million class M to 'CCCsf' from 'CCsf', RE 100%.

Fitch affirms the following class and revises the Rating Outlooks as indicated:

--\$5.3 million class J at 'BBsf', Outlook to Stable from Positive.

Fitch affirms the following classes as indicated:

--\$2.5 million class D at 'AAAsf', Outlook Stable;
--\$12 million class E at 'AAAsf', Outlook Stable;
--\$10.7 million class F at 'AAsf', Outlook Stable;
--\$9.3 million class G at 'Asf', Outlook Stable;
--\$13.3 million class H at 'BBBsf', Outlook Stable;
--\$2.2 million class N at 'Dsf'.

The class A-1, A-2, A-3, A-4, B and C certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only classes X-1 and X-2.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports