OREANDA-NEWS. Fitch Ratings has upgraded one and affirmed nine classes of Bear Stearns Commercial Mortgage Securities Trust 2004-TOP16 commercial mortgage pass-through certificates series. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade to class G reflects an increase in credit enhancement from paydown and stable performance since Fitch's last rating action. The pool is concentrated with only 17 loans remaining, which includes two specially serviced assets (33.2% of the pool). Four loans (22.7%) are defeased. New York City Cooperative loans make up 23.1% of the remaining pool. Fitch ran an additional sensitivity due to the concentration and quality of the remaining collateral.

Fitch modeled losses of 9.9% of the remaining pool; expected losses on the original pool balance total 1.5%, including $12.1 million (1.1% of the original pool balance) in realized losses to date.

As of the August 2016 distribution date, the pool's aggregate principal balance has been reduced by 95.2% to $55.1 million from $1.16 billion at issuance. Interest shortfalls are currently affecting classes K through P.

The largest contributor to expected losses is the specially-serviced Wal-Mart-Carlyle Plaza loan (7.7% of the pool), which is secured by a 126,846 square foot (sf) single-tenant retail center located in Belleville, IL, approximately 20 miles southwest of St. Louis. The loan transferred to special-servicing in August 2013 for maturity default. The sole tenant, Wal-Mart, vacated the property in 2010 and continued paying rent until their lease expiration, which was coterminous with the loan maturity. Additionally, the special servicer reports that there are environmental issues and is waiting on the state's position to determine its course of action.

The largest loan in the pool, 110 West 32nd street, is a specially-serviced asset (25.5%), comprising of an eight-story office and retail and a connecting seven-story office and retail building located in New York, NY. The loan transferred to Special Servicing in November 2014 for maturity default. The borrower's prior efforts to refinance the loan or sell the property have been unsuccessful. The borrower has continued to make monthly payments of debt service. As of September 2016, the loan-to-value is 55%.

RATING SENSITIVITIES

Rating Outlooks on classes E through H are Stable. Despite high credit enhancement further upgrades are not expected due to the adverse selection of the remaining collateral. Downgrades may occur to the already distressed classes as losses are realized.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

Fitch has upgraded the following class as indicated:

--$11.6 million class G to 'Asf' from 'BBBsf'; Outlook Stable.

Fitch affirms the following classes and revises REs as indicated:

--$9.5 million class E at 'AAAsf'; Outlook Stable;

--$10.1 million class F at 'AAAsf'; Outlook Stable;

--$10.1 million class H at 'BBsf'; Outlook Stable;

--$2.9 million class J at 'CCCsf'; RE 100%;

--$4.3 million class K at 'CCsf'; RE 100%;

--$5.8 million class L at 'Csf'; RE 35%;

--$892,528 class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%;

--$0 class O at 'Dsf'; RE 0%.

The class A-1, A-2, A-3, A-4, A-5, A-6, B, C and D and X-2 certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates.