OREANDA-NEWS. Fitch Ratings has downgraded and removed two classes from Rating Watch Negative and affirmed 18 classes of Credit Suisse Commercial Mortgage Trust, series 2007-C5 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The downgrades to classes A-3 and A-1-A are due to increased loss expectations including a lower valuation on the largest loan in special servicing. Fitch modeled losses of 21.9% of the remaining pool. Expected losses on the original pool balance total 24.6%, including \$273.4 million (10.1% of the original pool balance) in realized losses to date. Fitch has designated 50 loans (55.7%) as Fitch Loans of Concern, which includes 17 specially serviced assets (33.6%).

As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 33.4% to \$1.81 billion from \$2.72 billion at issuance. Per the servicer reporting, six loans (2.3% of the pool) are defeased. Interest shortfalls are currently affecting classes A-J through S.

The largest contributor to expected losses remains the specially-serviced Gulf Coast Town Center Phases I & II loan (10.6% of the pool). The Gulf Coast Town Center loan is secured by a 991,027 square foot (sf), open-air anchored retail center in Fort Myers, FL. The property is anchored by Bass Pro Shop, JC Penney, Belk and Regal Cinema, all of which are on long-term leases. According to the servicer, the loan remains current while being managed through a lender-controlled lockbox. Modification and settlement negotiations remain ongoing; however, no agreements have been made to date. As of year-end 2013, the property remains 97% occupied and reported a net operating income debt service coverage ratio (NOI DSCR) of 0.94x. The property was appraised in January 2015 which reported a value notably less than the outstanding balance on the loan.

The second largest driver of Fitch expected losses is the specially serviced Jericho Plaza (I & II) loan (9.1%). The interest-only loan, which transferred to the special servicer in October 2014, is secured by two class A office buildings, totaling 638,216 sf, located in Jericho, NY. The property has been suffering from poor performance over the last two years primarily due to lease rollover. In addition, the largest tenant, NY Community Bank (10.6% of net rentable area [NRA]), reportedly vacated the property at their lease expiration in December 2014. According to the servicer, the borrower is unable or unwilling to continue servicing the debt and requested a loan modification. The loan is being cash-managed via a lender-controlled lockbox and modification negotiations between the lender and borrower are ongoing. Financials for 2014 were not available for analysis.

RATING SENSITIVITIES
Although credit enhancement for classes A-3, A-AB, A-4 and A-1A remains the same, the ratings for classes A-3 and A-AB remain at 'AAA' with a Negative Outlook as they are expected to pay off prior to any significant loss to credit enhancement. The Outlooks reflect the remaining concentration risk of interest-only loans (49%) in the pool, minimal scheduled paydowns prior to 2017, and increasing loss expectations from both performing and specially serviced loans. Further downgrades to the remaining classes are possible should losses to the specially serviced loans increase or the pool experience more loans transfer to special servicing.

Fitch has downgraded and removed the following classes from Rating Watch Negative, and assigned Rating Outlooks as indicated:

--\$982.5 million class A-4 to 'Asf' from 'AAAsf'; Outlook to Stable;
--\$142.7 million class A-1-A to 'Asf' from 'AAAsf'; Outlook to Stable.

Fitch affirms the following classes as indicated:

--\$117.9 million class A-3 at 'AAAsf'; Outlook Negative;
--\$27.2 million class A-AB at 'AAAsf'; Outlook Negative;
--\$198 million class A-M at 'CCCsf'; RE 55%;
--\$74.1 million class A-1-AM at 'CCCsf'; RE 55%;
--\$153.5 million class A-J at 'Csf'; RE 0%;
--\$57.4 million class A-1-AJ at 'Csf'; RE 0%;
--\$23.8 million class B at 'Csf'; RE 0%;
--\$20.4 million class C at 'Csf'; RE 0%;
--\$15.6 million class D at 'Dsf'; RE 0%;
--\$0 class E at 'Dsf'; RE 0%;
--\$0 class F at 'Dsf'; RE 0%;
--\$0 class G at 'Dsf'; RE 0%;
--\$0 class H at 'Dsf'; RE 0%;
--\$0 class J at 'Dsf'; RE 0%;
--\$0 class K at 'Dsf'; RE 0%;
--\$0 class L at 'Dsf'; RE 0%;
--\$0 class M at 'Dsf'; RE 0%;
--\$0 class N at 'Dsf'; RE 0%.

The class A-1 and A-2 certificates have paid in full. Fitch does not rate the class O, P, Q and S certificates. Fitch previously withdrew the ratings on the interest-only class A-SP and A-X certificates.