OREANDA-NEWS. Fitch Ratings has upgraded one and affirmed 17 classes of Credit Suisse First Boston Mortgage Securities Corp. series 2005-C5, commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The upgrade and affirmations are due to stable performance and continued pay down since the last rating action. Fitch modeled losses of 10.3% of the remaining pool; expected losses on the original pool balance total 6.2%, including $100.9 million (3.5% of the original pool balance) in realized losses to date. Fitch has designated 22 loans (25.8% of the pool) as Fitch Loans of Concern, which includes 13 specially serviced assets (19.9% of the pool).

As of the July 2015 distribution date, the pool's aggregate principal balance has been reduced by 73.1% to $779.02 million from $2.94 billion at issuance. Per the servicer reporting, 23 loans (23.8% of the pool) are defeased. Remaining maturities are concentrated in August through November of 2015 at 78% of the remaining pool, including the defeased loans. Interest shortfalls are currently affecting classes F through S.

The largest contributor to expected losses is a specially serviced loan (3.4% of the pool) secured by a 1,747,418 square foot (sf) regional mall (537,716 sf collateral) originally built in 1954 and located in Southfield, MI (Detroit MSA). The loan transferred to special servicing in May 2014 due to imminent default. JC Penney (283,534 sf) and National Wholesale Liquidators (117,750 sf) both vacated several years ago and the borrower has had difficulty re-leasing the spaces. Since the last rating action, shadow anchors Macy's and Target announced store closures and the special servicer determined that lease-up of the mall was unlikely. Ultimately the mall closed in February 2015. Marketing of the property for sale began in April 2015, but Fitch expects little to no recoveries upon disposition of the asset.

The second largest contributor to expected losses is a specially serviced loan (3.6% of the pool) originally secured by two office properties totalling 313,847 sf (square feet) located in Phoenix, AZ. The loan transferred to special servicing effective March 2013 due to monetary default and foreclosure took place in September 2013. Since the last rating action, the larger of the two buildings has sold. The remaining property was 83.1% occupied as of the May 2014 rent roll; however, as June 2015 occupancy has declined to 41.9% primarily due to a reduction in large tenant space. The special servicer projects a disposition to occur in the second half of 2015.

The third largest contributor to expected losses is a specially serviced loan (5.7% of the pool) secured by a 720,558 sf (527,668 sf of collateral) regional mall located in Decatur, GA, approximately seven miles southeast of Atlanta. The mall is shadow anchored by a 198,000 sf Macy's. The loan recently transferred to special servicing in April 2015 due to imminent maturity default; however, a loan modification proposal is pending from the borrower. Performance has steadily declined in recent years with occupancy at 68% and debt service coverage ratio (DSCR) at 1.24x as of year-end (YE) 2014.

RATING SENSITIVITIES
The ratings for classes A-1-A through D are expected to remain stable as credit enhancement should continue to increase due to paydown from defeased loans and those paying off at maturity in the near term. Rating Outlooks on classes E and F are negative; should loss expectations on the specially serviced loans increase or performance deteriorate further on some of the already underperforming assets, including two distressed regional malls, these classes may be subject to downgrades. The distressed classes (those rated below 'B') may be subject to further downgrades as losses are realized.

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

Fitch has upgraded the following rating as indicated:--$224.8 million class A-J to 'AAAsf' from 'AAsf', Outlook Stable.

Fitch has affirmed the following ratings as indicated:

--$10.6 million class A-1-A at 'AAAsf', Outlook Stable;
--$290.2 million class A-M at 'AAAsf', Outlook Stable;
--$24.9 million class B at 'Asf', Outlook Stable;
--$47.6 million class C at 'BBBsf', Outlook to Stable from Negative;
--$21.8 million class D at 'BBB-sf', Outlook to Stable from Negative;
--$18.1 million class E at 'BBsf', Outlook Negative;
--$29 million class F at 'Bsf', Outlook Negative;
--$36.3 million class G at 'CCCsf', RE 90%;
--$21.8 million class H at 'CCsf', RE 0%;
--$32.6 million class J at 'Csf', RE 0%
--$22.4 million 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%;
--$0 class P at 'Dsf', RE 0%;
--$0 class Q at 'Dsf', RE 0%.

The class A-1, A-2, A-3, A-AB, A-4, 375-A, 375-B, and 375-C certificates have paid in full. Fitch does not rate the class S certificates. Fitch previously withdrew the ratings on the interest-only class A-X, A-SP and A-Y certificates.