Fitch Upgrades One Class of Citigroup Commercial Mtge Securities Inc. Series 2005-EMG

Fitch Ratings has upgraded one class of Citigroup Commercial Mortgage Securities Inc. Series 2005-EMG mortgage pass-through certificates, series 2005-EMG. A complete list of rating actions follows at the end of this release.

KEY RATING DRIVERS:

The upgrade reflects stable collateral performance and paydown of approximately 90% since Fitch's last review. The paydown provides increased credit support to the remaining senior classes. The pool has become increasingly concentrated with only nine loans remaining, all of which are located in New York.

RATING SENSITIVITY:

The majority of the loans remaining in the pool have at least 10 years of seasoning and are secured by properties that exhibit a strong, stable operating history. As such, ratings are likely to remain stable throughout the remaining life of the deal as additional paydown will be offset by an increasingly concentrated pool.

The pool consists of seasoned loans originated by Emigrant Savings Bank from 1976 to 2004. In most cases, the loans were originated in higher interest rate environments with prepayment lockouts. Due to the lockout provisions, the borrowers have been unable to take advantage of the lower interest rates; therefore, they are less likely to default as their loans approach maturity and more attractive financing options become available. Of the nine remaining loans in the pool, seven (85% of the pool balance) mature in 2014. The other two loans mature in 2018 and 2020, respectively, and are fully amortizing. The average debt service coverage ratio for the pool was 3.35x.

As of the January 2014 distribution date, the pool's aggregate principal balance has paid down by 98% to $14.2 million from $772.1 million at issuance. Interest shortfalls are currently affecting classes K through M. There are no loans in special servicing or on the watchlist.

Fitch has upgraded the following class:

--$7.9 million class J to 'BBBsf' from 'BBsf'; Outlook Stable.

Fitch has affirmed the following classes:

--$2.7 million class K at 'Bsf'; Outlook Stable;

--$1.8 million class L at 'CCCsf'; RE 100%;

--$1.8 million class M at 'Dsf'; RE 70%.

Classes A-1 through H have paid in full. Fitch previously withdrew the rating of the interest-only class X.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 2013).

Applicable Criteria and Related Research:

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=818358

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Fitch Ratings
Primary Analyst
R. Brook Sutherland
Director
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Fitch Ratings, Inc.
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Mary MacNeill
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