NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has downgraded two classes of Credit Suisse First Boston Mortgage Securities Corp., series 2001-CP4 (CSFB 2001-CP4). A detailed list of rating actions follows at the end of this release.

The downgrades reflect Fitch modeled losses of 18.75% of the remaining pool. Fitch has designated 26 loans (85.4%) as Fitch Loans of Concern, which includes 19 specially-serviced loans (66.7%). Fitch expects classes J through O to be fully depleted and class H to be impacted significantly from losses associated with the specially serviced assets.

As of the July 2011 distribution date, the pool's aggregate principal balance has reduced by 86.7% to $157.4 million from $1.18 billion at issuance. In addition, one loan (.4%) has been fully defeased. Interest shortfalls totaling $7,808,151 are currently affecting classes H through O.

The largest contributor to modeled losses is a specially serviced loan (10%) secured by a 156,776 square feet (SF) of office space located in Shelton, CT. The loan transferred to special servicing in June 2008 due to monetary default. The borrower has been under bankruptcy protection since August 2009 and the judge ordered conversion to Chapter 7 Bankruptcy in August 2010.

The second largest contributor to modeled losses is a specially serviced (7.6%) real estate owned (REO) 121,409 square foot office building located in Rockville, MD. The loan transferred to special servicing in October 2009 due to monetary default and the property was foreclosed on in May 2010. Lincoln Property Company has been appointed as the property manager and leasing agent while Cassidy Turley is marketing the property for sale.

The third largest contributor to modeled losses is a specially serviced loan (8.7%) secured by a 166,594 sf of office space located in Raleigh, NC. The loan transferred to special servicing in December 2009 due to monetary default. A foreclosure sale was originally scheduled for November 2010 until the borrower filed for bankruptcy which stayed the foreclosure sale. The court has postponed a confirmation of the borrower proposed reorganization plan until the value of the property is determined.

Fitch has downgraded, assigned Recovery Ratings (RRs), and revised Outlooks on the following classes as indicated:

--$11.8 million class G to 'B-sf' from 'Bsf'; Outlook to Stable from Negative;
--$22.1 million class H to 'CCsf/RR5' from 'B-'.

Fitch has also affirmed the following classes:

--$10.1 million class B at 'AAAsf'; Outlook Stable;
--$45.7 million class C at 'AAAsf'; Outlook Stable;
--$22.1 million class D at 'AAAsf'; Outlook Stable;
--$16.2 million class E at 'Asf'; Outlook Stable;
--$16.2 million class F at 'BBsf'; Outlook Stable;
--$13.2 million class J to 'Dsf/RR6' from 'Dsf/RR3'.

Class K, L, M, and N remain at 'Dsf/RR6'. Class O, which is not rated by Fitch has been reduced to zero from 20.6 million at issuance due to realized losses.

Fitch has withdrawn the rating on the interest-only class A-X. (For additional information on the withdrawal of the rating on the interest-only class, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010.)

Additional information on Fitch's criteria is available in the Nov. 17, 2010 report 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Nov. 17, 2010).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208

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