Fitch Ratings has upgraded one class and affirmed one class of Chase Commercial Mortgage Securities Corp.'s, commercial mortgage pass-through certificates, series 1998-2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade is due to continued pay down and minimal Fitch expected losses across the pool. The pool has experienced $10.4 million (0.8% of the original pool balance) in realized losses to date. Fitch has designated three of the remaining 11 loans (54.8% of the pool) as Fitch Loans of Concern; however, there are currently no delinquent or specially serviced loans.

As of the December 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.1% to $24.1 million from $1.27 billion at issuance. Per the servicer reporting, two loans (8.8% of the pool) are defeased. Interest shortfalls are currently affecting class J.

The three Fitch Loans of Concern consist of three restaurant portfolios. Two of the portfolios have six assets in six markets and the third has four assets in four markets; all of the properties are stand-alone restaurants located in diverse markets throughout the South and Midwestern United States. Collectively, the restaurant brands include Chili's, Macaroni Grill, and On the Border. The loans are current to date; however, the single-tenant exposure of the individual assets within the portfolios presents binary risk that could impact the loans should any of the assets not perform. In addition, the balloon loan maturity dates are coterminous with the respective tenant lease expirations and the most recent reported financials for each of the portfolios are as of year-end (YE) 2012.

RATING SENSITIVITIES

The Outlook Stable on class H and Outlook Positive on class I reflect increasing credit enhancement. Near-term pay down to class H is anticipated; total annual principal payments of $1.87 million are pending in January from three assets, and scheduled monthly amortization should continue from the remaining loans. Despite credit enhancement, an upgrade to class I is not warranted due to outdated financial reporting on three of the top four loans, pool concentration, non-defeased retail/restaurant exposure (70% of pool), and binary risk from single tenant assets. Class I may be subject to further rating actions should realized losses be greater than Fitch's expectations.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has taken the following rating actions:

--$2.8 million class H upgraded to 'AAAsf' from 'Asf'; Outlook Stable;

--$9.5 million class I affirmed at 'BBsf'; Outlook revised to Positive from Stable.

The class A-1, A-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class J certificates. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997841

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997841

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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