Fitch Upgrades 6 Classes of MSDW 2003-TOP9

Fitch Ratings has upgraded six and affirmed five classes of Morgan Stanley Dean Witter Capital I Trust (MSDWC) commercial mortgage pass-through certificates series 2003-TOP 9. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades are due to deleveraging of the pool due to paydowns. Fitch modeled losses of 9.3% of the remaining pool; expected losses on the original pool balance total 1%, including $3.4 million (0.3% of the original pool balance) in realized losses to date. The pool is concentrated with only 16 loans remaining, of which four have been designated as Fitch Loans of Concern (FLOC) (67.8%), and includes one specially serviced asset (8.7%). Two loans are defeased (1.5%).

As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 92.5% to $80.3 million from $1.08 billion at issuance, including 16.7% since last rating action. Interest shortfalls are currently affecting class O.

The largest loan (47.3% of the pool) is secured by a 258,685 sf office building located in Washington D.C. The property???s sole tenant is General Services Administration (GSA) which currently occupies 83.9% after previously downsizing its space in third- quarter 2012. This loan is considered a FLOC due to GSA???s plan to vacate the property after its August 2014 lease expiration. However, the property is well-located within the Capitol Hill submarket and has a relatively loan low exposure relative to recent sale comparables.

The largest contributor to expected losses (11.3% of the pool) is secured by a 121,618 sf neighborhood shopping center located in North Highlands, CA. The center is anchored by Raley's grocery store (50% of GLA). While occupancy has increased to 85.6% as of September 2013 from 74.9% at year-end (YE) 2012, the loan remains a FLOC due to its low servicer-reported DSCR of 0.56x and 0.82x at YE 2012 and YE 2011, respectively. However, the servicer has reported an improved DSCR of 1.04x as of year- to- date (YTD) June 30, 2013.

The next largest contributor to expected losses is the specially-serviced loan (8.7%), which is secured by 93,354 sf retail property located in Indianapolis, IN. The loan matured in 2012, and negotiations to resolve its delinquent status are ongoing. Occupancy improved to 95.7% as of Sept. 30, 2013 compared to 88.7% at YE 2012. However, YTD Sept. 30, 2013 DSCR was 1.07x compared to 1.44x at YE 2012.

RATING SENSITIVITY

Fitch ran additional stresses when considering upgrades. Although credit enhancement remains high relative to the rating category for some classes, further upgrades were limited due to increasing pool concentration and re-tenanting concerns regarding the largest loan. Due to smaller than average subordinate class sizes, any increase in realized losses may have a greater impact on credit enhancement.

Rating Outlooks on classes C through E and classes H through L remain Stable, and the Rating Outlook on class F has been revised to Positive from Stable due to increasing credit enhancement and continued paydown. Should performance remain stable, without risk for interest shortfall to this class, future upgrades are possible.

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

--$12.1 million class D to 'AAAsf' from 'AAsf'; Outlook Stable;

--$14.8 million class E to 'AAsf' from 'Asf'; Outlook Stable;

--$6.7 million class F to 'Asf' from 'BBB+sf'; Outlook to Positive from Stable;

--$5.4 million class G to 'Asf' from 'BBBsf'; Outlook Stable;

--$10.8 million class H to 'BBBsf' from 'BBsf'; Outlook Stable;

--$5.4 million class K to 'BBsf' from 'Bsf'; Outlook Stable.

Fitch affirms the following classes as indicated:

--$2.8 million class C at 'AAAsf'; Outlook Stable;

--$4 million class J at 'BBsf'; Outlook Stable;

--$5.4 million class L at 'Bsf'; Outlook Stable;

--$2.7 million class M at 'CCCsf'; RE 100%;

--$2.7 million class N at 'CCsf'; RE 95%.

Fitch does not rate the class O certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates. In addition, class A-1, A-2, B, and X-2 have been paid in full.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 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

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=818730

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Fitch Ratings
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Tiffany Pierce
Associate Director
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Mary MacNeill
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