OREANDA-NEWS. Fitch Ratings has downgraded two classes of Bear Stearns Commercial Mortgage Securities Trust (BSCMST), series 2006-TOP22 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The downgrades are based on the further certainty of losses associated with the loans in special servicing. The pool's aggregate principal balance has been reduced by 39.9% to $1.014 billion from $1.705 billion at issuance. Fitch modeled losses of 5.14% of the remaining pool; expected losses on the original pool balance are 4.5%, which includes 1.44% in realized losses to date. Fitch designated 27 loans (15.9%) as Fitch Loans of Concern, which include three specially serviced loans (1.4%).

The largest contributor to Fitch's modeled losses is the real estate owned Gateway Business Center (0.87%), an 117,500 square foot (sf) suburban office building located in Melbourne, FL. The occupancy rate at the subject is 57% with significant rollover in the next 12 months. The special servicer is currently working to extend the in-place leases and secure additional tenants to increase the building's occupancy. Upon completion of the leasing activity, the special servicer will determine a disposition strategy.

The second largest contributor to Fitch's modeled losses is Lake Buena Vista Courtyard by Marriott (1.2%), a 308-room full-service, Marriott-flagged hotel, located in Orlando, FL. The resort faces strong competition from the large number of properties in the sub-market. Performance has started to recover with the resurgence of activity at Walt Disney World and Universal Studios. Occupancy rose to 68% during the 2014 calendar year, which is just below the 72% that was last reached at issuance. The owner lowered rates during the first half of 2015 in order to raise occupancy and increase year over year revenue growth.

The third largest contributor to Fitch's modeled losses is Rolling Meadows Shopping Center (1.5% of the pool), a 130,436 sf anchored retail center located in Rolling Meadows, IL. The subject was built in 1956 and renovated in 1990. The property is located 28 miles northwest of the Chicago central business district in the suburban submarket of Arlington Heights. The center has experienced performance issues for the past year due to increased expenses and decreased occupancy. Although the sponsor has increased occupancy to 89%, from a 2012 low of 80%, the center is still below the issuance high of 98%. Although performance has rebounded significantly in the first half of 2015, Fitch will continue to monitor the loan until the subject stabilizes and deferred maintenance issues are addressed.

RATING SENSITIVITIES

The Rating Outlook was revised to Stable for the D and E classes due to stabilizing performance of the pool. These classes could experience negative ratings migration if the transaction experiences an increase in the number of specially serviced loans or expected losses increase. Distressed classes will continue to be downgraded as losses are realized. Fitch revised the Rating Outlook on class A-J to Positive from Stable as future upgrades may be warranted if collateral performance continues to remain stable or improve; additionally credit enhancement is expected to rise as loans payoff at or close to maturity.

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

Fitch downgrades the following classes as indicated:

--$14.9 million class G to 'CCsf' from 'CCCsf'; RE0%;
--$10.7 million class J to 'Csf' from 'CCsf'; RE0%.

Fitch affirms the following classes and revises Outlooks as indicated:

--$444.6 million class A-4 at 'AAAsf'; Outlook Stable;
--$144.9 million class A-1A at 'AAAsf'; Outlook Stable;
--$170.5 million class A-M at 'AAAsf'; Outlook Stable;
--$125.7 million class A-J at 'AAsf'; Outlook to Positive from Stable;
--$32 million class B at 'Asf'; Outlook Stable;
--$12.8 million class C at 'BBBsf'; Outlook Stable;
--$25.6 million class D at 'BBsf'; Outlook to Stable from Negative;
--$14.9 million class E at 'Bsf'; Outlook to Stable from Negative;
--$14.9 million class F to 'CCCsf'; RE 70%;
--$8.5 million class H at 'CCsf'; RE0%;
--$2.1 million class K at 'Csf'; RE0%;
--$3 million class L at 'Dsf'; RE0%;
--$0 million class M at 'Dsf'; RE0%;
--$0 million class N at 'Dsf'; RE0%;
--$0 million class O at 'Dsf'; RE0%.

Fitch does not rate the $0 million class P. Classes A-1, A-2, and A-3 and A-AB have repaid in full. Classes M through O and the unrated class P have been reduced to zero due to losses realized on loans liquidated from the trust. Fitch previously withdrew the rating on the interest-only class X.