OREANDA-NEWS. Fitch Ratings has upgraded one and affirmed one class of DLJ Commercial Mortgage Corp. (DLJ) commercial mortgage pass-through certificates series 1998-CG1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade is the result of increasing credit enhancement and stable performance of the pool since Fitch's last rating action.

As of the March 2015 remittance report, the transaction has paid down 97% to \$47.5 million from \$1.564 billion at issuance. Fitch modeled losses 1.94% of the remaining pool; expected losses of the original pool are at 1.07% including losses already incurred to date (1.01%). Fifteen of the original 303 loans remain outstanding. There are no specially serviced loans, but seven loans are on the servicer watchlist (39.4%) of which three (15.2%) are considered Fitch loans of concern. Three loans (30%), including the largest loan in the pool (24.3%), are fully defeased. The remaining non-defeased loans consist of fully amortizing (71.4%) and ARD loans (20.8%). The loans' final maturity dates are in 2016 (7.1%), 2017 (7.4%), 2018 (27.5%), 2022 (7.6%), and 2023 (50.4%).

The largest Fitch loan of concern (7.4%) is secured by a 59,238 square foot (sf) retail center, Oxford Square, located in Casselberry, FL a suburb 10 miles northeast of the Orlando central business district (CBD). The loan was formerly in special servicing and modified in May 2012 whereby the loan term was increased by 115 months as well as reduced the interest rate to 6.25% from the issuance rate of 7%. The occupancy of the center reached a new low of 75% in December 2014 from an issuance high of 97%. The loan's scheduled maturity date is October 2017.

The second largest Fitch loan of concern (5.7%) is secured by The Park Shopping Center, a 82,542 sf retail center located in Orange Park, FL a suburb located 15 miles southeast of the Jacksonville (CBD). The loan was formerly in special servicing and modified in May 2012 whereby the term was extended with a new maturity date of November 2016. The property's occupancy was listed at 71% as of third quarter 2014 after a low of 44% in December 2013. The sponsor continues to aggressively market the vacant space and a new tenant occupied a suite in January 2015 along with a current tenant renewing through 2019. The loan remains current.

The largest remaining non-defeased loan in the pool is secured by a 107,094 sf anchored retail center, Meadow Central Market (7.8%), located in the North Dallas neighborhood, approximately eight miles north of the central business district. The property's current occupancy is listed at 92% and has consistently stayed above 90% since issuance. The property's operating cash flows remain strong with the servicer reported third quarter 2014 debt service coverage ratio at 1.72 times (x). The subject could experience short-term volatility as 25% of the net rentable area (NRA) is scheduled to expire during the next 12 months. The loan has a maturity date of April 2023.

RATINGS SENSITIVITIES

Although credit enhancement is high, the ratings on classes B-6 and B-7 are stable as additional upgrades are not expected due to the concentrated nature of pool with only 15 loans remaining and lack of near term loan payoffs expected. Downgrades are possible if loans transfer to special servicing and expected losses increase significantly.

Fitch upgrades the following class:

--\$24.2 million class B-6 to 'Asf' from 'BBBsf', Outlook Stable.

Fitch affirms the following class:

--\$15.6 million class B-7 at 'Bsf', Outlook Stable.

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