OREANDA-NEWS. Fitch Ratings has upgraded six classes and affirmed four classes of Credit Suisse First Boston Mortgage Securities Corp., commercial mortgage pass-through certificates series 2004-C2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades reflect the defeasance of two loans accounting for 85.7% of the pool. The affirmations of the distressed classes reflect the probability of losses from the specially serviced assets. Six loans remain, of which three are with the special servicer representing 12.7% of the pool. The pool has experienced $11.6 million (1.2% of the original pool balance) in realized losses to date.

As of the December 2015 distribution date, the pool's aggregate principal balance has been reduced by 92.7% to $70.5 million from $966.8 million at issuance. Per the servicer reporting, two loans (85.7% of the pool) are defeased. Interest shortfalls are currently affecting classes L through P.

The largest contributor to expected losses is a specially-serviced loan (6.4% of the pool), which is secured by a 119,061-square foot (sf) suburban medical office building located in Evergreen Park, IL, roughly 15 miles from Chicago. The property is adjacent to a 1.2 million-sf shopping mall that was demolished in October 2015 and a new retail development is being planned for the site. The loan was transferred to the special servicer in February 2014 due to maturity default. Foreclosure was filed in August 2014 and a receiver was appointed in November 2014. Per the servicer, negotiations with the borrower will be dual tracked with the foreclosure action until a resolution is achieved. The largest tenants include Advocate Health (10% of net rentable area (NRA)) Fresenius Medial (6.5% of NRA) and Women's Healthcare of IL (5.5% of NRA). According to the September 2015 rent roll, occupancy is 66%.

The next largest contributor to expected losses is a specially-serviced loan (2.8%), which is secured by a 64 unit multi-family property located in Wayne, MI, roughly 20 miles from Detroit. The loan was transferred to the special servicer in September 2014 for imminent default and foreclosure has been filed. Negotiations with the borrower are ongoing and will be dual tracked with the foreclosure action until a resolution is achieved. The property is 88% occupied according to the September 2015 rent roll.

The third largest contributor to expected losses is a specially-serviced asset (3.4%), which is secured by a
16,800-sf retail property located in Puyallup, WA, approximately 36 miles south of Seattle. The loan was transferred to special servicer in February 2013 due to payment default. The loan had previously been in special servicing in 2009 for payment default, but was brought current in early 2011 and returned to the master servicer in mid-2012. A forbearance agreement could not be reached with the borrower and foreclosure was completed in May 2014. The property is now REO, but there are no immediate disposition plans at this time. Per the servicer, the asset is currently in a value-add strategy as tenants are sought to lease the vacant space. As of September 2014, the property was reported to be 70.5% occupied.

RATING SENSITIVITIES

Rating Outlooks on classes D through J remain Stable due to increasing credit enhancement and continued paydown. The balance of these classes is covered by the defeased collateral. Positive Outlooks have been assigned to classes L and K as they are also covered by the defeased collateral, but further upgrades were limited at this time due to the uncertainty of ultimate losses from the specially serviced assets, and the potential for further interest shortfalls. Once the specially serviced assets are resolved, upgrades to these classes may be warranted. The distressed classes will be downgraded as losses are realized.

DUE DILIGENCE USAGE

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

Fitch upgrades the following classes and assigns or revises Rating Outlooks as indicated:

--$9.7 million class F to 'AAAsf' from 'Asf'; Outlook Stable;
--$9.7 million class G to 'AAAsf' from 'Asf'; Outlook Stable;
--$10.9 million class H to 'AAAsf' from 'Asf'; Outlook Stable;
--$6 million class J to 'AAAsf' from 'Asf'; Outlook Stable;
--$3.6 million class K to 'Asf' from 'BBsf'; Outlook Positive;
--$3.6 million class L to 'BBsf' from 'CCCsf'; Outlook Positive Assigned.

Fitch affirms the following classes:

--$7.1 million class D at 'AAAsf'; Outlook Stable;
--$9.7 million class E at 'AAAsf'; Outlook Stable;
--$2.4 million class N at 'Csf'; RE 0%;
--$1.2 million class O at 'Csf'; RE 0%.

The class A-1, A-1-A, A-2, B and C certificates have paid in full. Fitch does not rate the class M and P certificates. Fitch previously withdrew the ratings on the interest-only class A-X and A-SP certificates.