Cobalt CMBS Commercial Mortgage Trust 2007-C3 Class C Rating Lowered To 'D (sf)' Due To Principal Loss


CENTENNIAL (S&P Global Ratings) Jan. 11, 2019--S&P Global Ratings today 
lowered its rating to 'D (sf)' from 'CCC- (sf)' on the class C commercial 
mortgage pass-through certificates from Cobalt CMBS Commercial Mortgage Trust 
2007-C3, a U.S. commercial mortgage-backed securities (CMBS) transaction. 

The downgrade reflects principal loss that impacted the class, as detailed on 
the Dec. 17, 2018, trustee remittance report. According to our policy and 
procedures, we will discontinue the 'D (sf)' rating any time after it has been 
outstanding for at least 30 days.

The December 2018 trustee remittance report reported $75.8 million in realized 
losses, which resulted from the liquidation of seven specially serviced 
assets. The four-largest specially serviced loans contributed $63.8 million of 
the loss to the trust. The largest loan by balance, Zale Corporate 
Headquarters, liquidated at a 60.5% loss severity of its $37.4 million 
beginning balance at liquidation. Sheraton Suites Wilmington, DE ($33.3 
million beginning balance at liquidation), Lynnhaven North Shopping Center 
($24.1 million), and Chant Portfolio – Pool 2 ($21.8 million) are the second-, 
third-, and fourth-largest loans in the portfolio. They liquidated at 47.8%, 
69.2%, and 39.3% loss severity of their respective beginning balances. The 
remaining three loans had a combined realized loss of $12.0 million.

Consequently, classes D, E and F (classes D and F are currently rated 'D 
(sf)', while class F is not rated by S&P Global Ratings) experienced a 100% 
loss of their respective beginning balance, while class C experienced a loss 
of $15.0 million of its beginning balance (74.16%).
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