Roundup: BoA Hotel Deal Gets a Downgrade

The ratings on two classes of Banc of America Large Loan Inc.'s series 2002-FLT1 have been placed on Rating Watch Negative by Fitch Ratings.

The affected classes are class H, rated BBB-plus, and class J, rated BBB.

The rating actions were attributed to a decline in performance of two loans, Windsor Court Hotel and Starrett Lehigh.

BRE Notes Downgraded

New York-The senior unsecured notes and preferred stock of BRE Properties Inc., a San Francisco-based real estate investment trust, have been downgraded by Fitch Ratings.

The $955 million of senior notes, due 2004 through 2013, were downgraded from BBB-plus to BBB, and the approximately $129 million of outstanding preferred stock has been downgraded from BBB to BBB-minus, the rating agency said. The rating outlook is Stable. BRE's credit statistics "have been pressured by macroeconomic conditions affecting all apartment owners, primarily a low interest rate environment and job losses which have weakened demand for apartment units," Fitch said. The REIT's exposure to San Francisco (representing 26% of total net operating income) and Seattle (11%) has caused BRE to be disproportionately affected, the rating agency said.

CFSB Deal Lowered

New York-The ratings on classes H-PAL and J-PAL of Credit Suisse First Boston Mortgage Securities Corp. commercial mortgage pass-through certificates, series TFL1, are being reviewed for possible downgrade by Moody's Investors Service.

Moody's attributed the rating actions to concerns about the $440 million Palisades Center Loan, the largest in the pool, which is secured by fee and leasehold interests in a 2.3 million square foot super-regional mall in West Nyack, N.Y. Approximately 270,000 square feet of space was built in the development, which the borrower did not have governmental approval to lease. Local voters must approve the use of the excess space before the issuance of a certificate of occupancy, and they voted down the measure in a referendum last year, Moody's said. The property's overall vacancy rate is 8.0%, up from 5.7% a year ago.

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