OREANDA-NEWS. Fitch Ratings affirms Dillon Read Capital Management Four Times Square Trust, commercial mortgage pass-through certificates, series 2006-4TS. A full list of rating actions follows at the end of this ratings action commentary.

KEY RATING DRIVERS
The rating affirmations reflect stable to improved performance of the collateral from issuance expectations. The mortgage loan is collateralized by a long-term leasehold interest in Four Times Square, a 48-story class A office building located in Manhattan's Times Square submarket, built in 1999. The loan currently consists of a \$14.9 million A-1 note, a \$516.1 million A-2 note, a \$25.9 million B note, and a \$24.1 million C note. The A-1 note, which is currently amortizing, is not an asset of the trust and is pari passu with the A-2 note. The total outstanding mortgage debt of \$581 million translates to \$344 per square foot (psf). The loan has an anticipated repayment date (ARD) of December 2020, at which time the loan will have amortized down to approximately \$305 psf.

At issuance, the two largest tenants Skadden, Arps, Slate, Meagher & Flom LLP (49% of net rentable area [NRA]) and Advanced Magazine Publishers Inc. (Conde Nast) (46% NRA) occupied 95% of the building's 1.69 million square feet (sf) of NRA. Per the April 2015 rent roll, the property is 99% occupied. There is currently 10,603 sf of vacant office space and 3,093 sf of vacant retail space.

The leases for Skadden, Arps, Slate, Meagher & Flom LLP and Conde Nast expire prior to the ARD and each tenant has a springing rollover reserve two years prior to its lease expirations. The Skadden, Arps, Slate, Meagher & Flom LLP lease expires in 2020. The Conde Nast lease expires in 2019.

Conde Nast signed a 25 year lease for office space at One World Trade Center and has vacated their space between November 2014 and March 2015. Per the master servicer, the Port Authority of New York and New Jersey has agreed to assume Conde Nast's lease obligation. Additionally, it has been publicly reported that Skadden, Arps, Slate, Meagher & Flom LLP have signed a letter of intent for a 20-year lease at the to-be-built, 1 Manhattan West to take effect at the expiration of their current lease. The master servicer was unable to provide any leasing updates.

RATING SENSITIVITIES
The investment grade rated classes A, B, and C are expected to remain stable. Although occupancy has been impacted by the departure of Conde Nast, the property is located in a highly desirable location and average in-place rents are currently below market. Additionally, the loan was structured with a rollover reserve.

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

Fitch affirms the following classes as indicated:

--\$516.1 million class A at 'AAA'; Outlook Stable;
--\$25.9 million class B at 'AA+'; Outlook Stable;
--\$24.1 million class C at 'AA'; Outlook Stable.

Fitch had previously withdrawn the rating of the interest-only class X.