NEW YORK - (Business Wire) Fitch Ratings places the following classes of CS First Boston Mortgage Securities Corp., pass-through certificates, series 2007-TFL2 on Rating Watch Negative:
--$36.6 million class J at 'BBB'; Rating Watch Negative;
--$39.6 million class K from 'BBB-'; Rating Watch Negative;
--$33.5 million class L at 'BB-'; Rating Watch Negative.
The classes have been placed on Rating Watch Negative due to the monetary default and subsequent transfer to special servicing of The Resorts Atlantic City (11.7%) loan. The loan is now thirty days delinquent.
The Resorts Atlantic City loan is secured by a 942-room casino/hotel located in Atlantic City, NJ. Total debt on the loan is $360 million, which consists of a $175 million senior trust component and a $185 million junior component held outside of the trust.
The property has exhibited declining performance since issuance due to several factors including increased competition, a smoking ban introduced throughout the entire Atlantic City gaming market, and the overall negative performance of the gaming industry due to general macro-economic conditions throughout the U.S.
Fitch will resolve the rating watch status of the classes as more information on a potential workout and an updated property valuation is available.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Christopher Bushart, +1-212-908-0606
Adam Fox, +1-212-908-0869
Sandro Scenga, +1-212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com
