OREANDA-NEWS. Fitch Ratings has downgraded one class and affirmed 16 classes of Citigroup Commercial Mortgage Trust (CGCMT) commercial mortgage pass-through certificates series 2006-C4 due to stable overall performance. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect the transaction's stable performance since Fitch's last rating action. Fitch modeled losses of 5.9% of the remaining pool; expected losses on the original pool balance total 9.4%, including $125.6 million (5.6% of the original pool balance) in realized losses to date. Fitch has designated 29 loans (29%) as Fitch Loans of Concern, which includes four specially serviced assets (3.7%). The majority of the pool (98.6%) matures within the next year.

As of the June 2015 distribution date, the pool's aggregate principal balance has been reduced by 34.7% to $1.48 billion from $2.26 billion at issuance. Per the servicer reporting, 16 loans (20.7% of the pool) are defeased. Interest shortfalls are currently affecting classes E through P.

The largest contributor to expected losses is the specially-serviced Bossier Corners asset (1.4%), a 147,900 square foot (sf) retail center located in Bossier City, LA. The loan was transferred to the special servicer in August 2011 due to imminent default. Foreclosure occurred and the asset became real estate owned (REO) in June, 2013. The special servicer reports that the property is under contract to be sold with a closing expected in the third quarter.

The next largest contributor to expected losses (1.3% of the pool), is secured by a 295,700-sf suburban office property in Marlborough, MA. The property has struggled with occupancy for the past several years as some large tenants have vacated. While there has been some progress recently in leasing, there will need to be significantly more progress to bring cash flow above break-even. As of year-end (YE) 2014, the property was 42% occupied.

The third largest contributor to expected losses is the specially-serviced Northbelt Office Center II asset (0.9%), a 124,000-sf office property in Houston, TX. The loan transferred to the special servicer in July, 2013 when a large tenant vacated the property. The asset became REO in June 2014. The special servicer has been working to stabilize the asset and now plans to market the property for sale in the third quarter of 2015.

RATING SENSITIVITIES
The Rating Outlooks on the senior classes remain Stable due to increasing credit enhancement from continued paydown and defeasance. The Rating Outlook on class B is Negative due to potential erosion in credit enhancement from disposition of loans in special servicing as well as several highly levered loans in the pool. If losses on the specially serviced loans exceed Fitch's expectations or should additional loans fail to pay off at maturity, downgrades to these classes are possible. Should the majority of the loans in the pool pay off at their upcoming maturity date, some upgrades could be possible.

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

Fitch downgrades the following class as indicated:
--$25.1 million class F to 'Dsf' from 'Csf'; RE 0%.

Fitch affirms the following classes as indicated:

--$712.4 million class A-3 at 'AAAsf'; Outlook Stable;
--$220.6 million class A-1A at 'AAAsf'; Outlook Stable;
--$226.4 million class A-M at 'AAAsf'; Outlook Stable;
--$164.1 million class A-J at 'BBsf'; Outlook Stable;
--$50.9 million class B at 'Bsf'; Outlook Negative;
--$25.5 million class C at 'CCCsf'; RE 35%;
--$31.1 million class D at 'CCsf'; RE 0%;
--$22.6 million class E at 'Csf'; RE 0%;
--$0 class G at 'Dsf'; RE 0%;
--$0 class H at 'Dsf'; RE 0%;
--$0 class J at 'Dsf'; RE 0%;
--$0 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%;
--$0 class M at 'Dsf'; RE 0%;
--$0 class N at 'Dsf'; RE 0%;
--$0 class O at 'Dsf'; RE 0%.

Classes A-1, A-2 and A-SB have paid in full. Fitch does not rate class P. Fitch previously withdrew the rating on the interest-only class X certificates.

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