Fitch Downgrades 5 Classes of MSCI 2006-IQ11; Revises Outlooks

--$18.2 million class G to 'BBB-' from 'BBB'; Outlook Negative;

--$14.1 million class H to 'BB+' from 'BBB-'; Outlook Negative.

Fitch also downgrades and revises Outlooks for the following:

--$8.1 million class J to 'B+' from 'BB'; Outlook to Negative;

--$4 million class K to 'B' from 'BB-'; Outlook to Negative;

--$4 million class L to 'B-' from 'B+'; Outlook to Negative.

In addition, Fitch affirms and revises Outlooks as follows:

--$14.1 million class F at 'BBB+'; Outlook to Negative.

Fitch affirms and maintains Outlooks on the following classes:

--$22.4 million class A-1 at 'AAA'; Outlook Stable;

--$321.2 million class A-1A at 'AAA'; Outlook Stable;

--$162.9 million class A-2 at 'AAA'; Outlook Stable;

--$96.8 million class A-3 at 'AAA'; Outlook Stable;

--$490 million class A-4 at 'AAA'; Outlook Stable;

--$161.6 million class A-M at 'AAA'; Outlook Stable;

--$147.5 million class A-J at 'AAA'; Outlook Stable;

--Interest-only class X at 'AAA'; Outlook Stable;

--Interest-only class X-Y at 'AAA'; Outlook Stable;

--$30.3 million class B at 'AA'; Outlook Stable;

--$12.1 million class C at 'AA-'; Outlook Stable;

--$22.2 million class D at 'A'; Outlook Stable;

--$16.2 million class E at 'A-'; Outlook Stable.

Fitch does not rate the $6.1 million class M, $6.1 million class N, $2 million class O or $18.2 million class P.

The downgrades reflect an increase in Fitch expected losses on the specially serviced assets since Fitch's last rating action. Fitch anticipates losses on the specially serviced assets to be absorbed by the non-rated tranches; however, credit enhancement will be significantly reduced. Rating Outlooks reflect the likely direction of any rating changes over the next one to two years. As of the December 2008 distribution date, the pool has paid down 2.4%, to $1.58 billion from $1.61 billion at issuance.

Fitch has identified 23 Loans of Concern (9.8%) including five specially serviced assets (5.8%). The largest specially serviced asset is an approximately 500,000 square foot (sf) industrial property (3.5%) in Phoenix, AZ, which transferred to the special servicer when the single tenant, LeNature, filed for bankruptcy and vacated the space. The loan remains current under the forbearance agreement and loan assumption negotiated in June 2008 by a wholly-owned subsidiary of CB Richard Ellis Investors, LLC. The property is actively being marketed for a replacement tenant.

The second largest Loan of Concern (1%) is a portfolio of two retail properties, located in Michigan and New Jersey totaling 334,208 sf, and is specially serviced. The portfolio transferred to special servicing in June 2008 for monetary default and is in foreclosure.

The third largest Loan of Concern (0.9%) is also specially serviced. The asset is a 212,000 sf office property located in Lancaster, PA, and is 100% vacant. The property is in foreclosure.

The largest loan (10.1%) is secured by a 1.87 million sf office property in Chicago, IL. Reported occupancy as of June 2008 was 78%, in-line with issuance with a debt serviced coverage ratio of 2.18 times (x).

The second largest loan (6.0%) is secured by a retail mall located in the Riverwalk district of San Antonio, TX. Reported occupancy as of September 2008 was 89% compared to 95% at issuance with a DSCR of 1.74x.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

SOURCE: Fitch Ratings

Fitch Ratings Jeffrey Diliberto, +1-212-908-9173 Adam Fox, +1-212-908-0869 (New York) Media Relations: Sandro Scenga, +1-212-908-0278 (New York) sandro.scenga@fitchratings.com