OREANDA-NEWS. Fitch Ratings has affirmed all classes of Cobalt CMBS Commercial Mortgage Trust series 2006-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The affirmations are the result of stable overall pool performance since Fitch's last review. Fitch modeled losses of 7.7% for the remaining pool; expected losses on the original pool balance total 19.2%, including \\$332.3 million in realized losses to date. Fitch has designated 19 loans (18.2%) as Fitch Loans of Concern, which includes three specially serviced assets (2.1%).

As of the July 2015 distribution date, the pool's aggregate principal balance (including rakes) has been reduced by 52.7% to \\$1.21 billion from \\$2.56 billion at issuance. Eight loans (12.6%) are defeased. Interest shortfalls totaling \\$2.8 million are currently affecting class AJ. Classes G through P have outstanding cumulative interest shortfalls, but have been fully written down.

The largest contributor to modeled losses is an interest-only (IO) loan (3%) secured by a 296,308 square foot (sf) Class A office building located in Bloomington, MN. The loan was modified and restructured into an A/B notes split effective November 2012. The property performance has improved slightly since Fitch's last review due to new leases executed in 2014 and 2015. Per March 2015 rent roll, the property was 86.6% occupied, compared to 65% at last review. The servicer reported year-end (YE) 2014 debt service coverage ratio (DSCR) for the A note was 1.37x, compared to 0.78x at year-end YE2013 and 0.97x at YE2012. Fitch does not expect recoveries on the B note and has modeled a loss on the A note.

The second largest contributor to modeled losses (1.3%) is a real estate owned (REO) full-service hotel with 187 rooms. The property is located in Boston, MA. The hotel was converted to a Double Tree effective September 2013. As of trailing 12 month (TTM) April 2015, occupancy, ADR, and RevPar was 61.2%, \\$113.07, and \\$69.19 respectively. The strategy is to continue to add value by completing the property-improvement plan (PIP) and stabilize the hotel under the new brand.

The third largest contributor to modeled losses is an IO loan (3.3%) secured by a 336-unit multifamily property located in Glendale, AZ. As Arizona State University's (ASU) West Campus is located within close proximity of the subject, a significant portion of the residents at the property are students of ASU. The servicer reported first quarter 2015 DSCR was 1.24x, compared to 1.1x at YE2014, 1.03x at YE2013 and 0.98x at YE2012. As of March 31, 2015, the property was 91% occupied.

RATING SENSITIVITIES
The 'AAA' rated classes are expected to remain stable and no near-term rating actions are anticipated. The 'BB' rated class may be subject to future downgrades should pool performance deteriorate and losses exceed expectations.

Fitch has affirmed the following ratings:

--\\$590.9 million class A-4 at 'AAAsf'; Outlook Stable;
--\\$225.5 million class A-1A at 'AAAsf'; Outlook Stable;
--\\$253.1 million class A-M at 'BBsf'; Outlook Negative;
--\\$139 million class A-J at 'Dsf'; RE 0%;
--\\$0 class B at 'Dsf'; RE 0%;
--\\$0 class C at 'Dsf'; RE 0%;
--\\$0 class D at 'Dsf'; RE 0%;
--\\$0 class E at 'Dsf'; RE 0%;
--\\$0 class F at 'Dsf'; 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%.

The classes A-1, A-2, A-AB, A-3, AMP-E1 and AMP-E2 have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class IO certificates.