OREANDA-NEWS. Fitch Ratings has upgraded three and affirmed two classes of Credit Suisse First Boston Mortgage Securities Corp., series 2006-TFL2. Since issuance, the transaction has been reduced by nearly 98% from paydown and dispositions. Only one loan, the JW Marriott Starr Pass, remains. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The upgrades are due to improved recovery prospects for the JW Marriott Starr Pass, as well as higher credit enhancement from loan payoffs. The JW Marriott Starr Pass consists of a 575-room full service hotel and a 27-hole Arnold Palmer-designed championship golf course, located in Tucson, AZ. The hotel, which offers 88,000 sf of meeting space including a 20,000 sf ballroom, was opened in 2005 and maintains a high curb appeal with well-kept landscaping and an attractive design.

In April 2010, the loan transferred to special servicing for imminent default. Performance did not meet expectations from issuance, and the recession hit the Southwest, specifically the Tucson market, particularity hard. In addition to performance related issues, the workout has also faced setbacks due to legal disputes between the loan servicer and borrower.

According to the servicer, progress has been made in working through the court proceedings, and resolution of certain key issues is on the horizon. In addition, a recent appraisal shows improvement to value estimates. The current rating actions reflect these positive updates.

RATING SENSITIVITIES
The ratings are expected to remain stable in the near term. While property valuation has improved, further downgrades to the already distressed classes are possible if workout negotiations continue to stall.

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

Fitch has upgraded the following classes:

--\$949,356 class G to 'BBBsf' from 'BBsf'; Outlook Stable;
--\$19 million class H to 'BBsf' from 'CCCsf'; Outlook Stable assigned;
--\$20 million class J to 'Bsf' from 'CCCsf'; Outlook Stable assigned.

Fitch affirms the following classes:

--\$22 million class K at 'CCCsf'; RE 100%;
--\$16.1 million class L at 'Dsf'; RE 70%.