OREANDA-NEWS. March 16, 2015. Fitch Ratings has upgraded one class and affirmed four classes of Morgan Stanley Dean Witter Capital I Trust 2002-TOP7 (MSDW 2002-TOP7) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The upgrade is due to defeased collateral, which is more than sufficient to pay the most senior class in full. Only seven loans remain in the pool, two of which are defeased (25.1%) and one is specially serviced (49.4%). As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.9% to \\$10.7 million from \\$969.4 million at issuance. Interest shortfalls are currently affecting classes L through O. The specially serviced loan (49.4% of the pool) is secured by an 84,098 square foot anchored retail center in Tucson, AZ. The loan was previously in special servicing in 2011, modified, and returned to the master servicer. As a result of a maturity default at the expiration of the modification, the loan was sent back to the special servicer in November 2014. According to the servicer, all rents are being collected via a hard lockbox and the loan is being dual tracked for foreclosure and a possible modification. Updated financial performance was not available for analysis.
RATING SENSITIVITY
The rating on class J is expected to remain stable, as credit enhancement remains high, which offsets the increasing concentration and continued risk of adverse selection. Additional downgrades to class K are possible as losses are realized. Classes L, M, and N will remain at 'Dsf' as losses have already been realized.

Fitch upgrades the following class:

--\\$715,834 class J to 'AAAsf' from 'BBsf'; Outlook Stable.

Fitch affirms the following classes:

--\\$7.3 million class K at 'CCsf'; RE 85%;
--\\$2.7 million class L at 'Dsf'; RE 0%;
--\\$0 class M at 'Dsf'; RE 0%;
--\\$0 class N at 'Dsf'; RE 0%.

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

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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