1st Union/Chase CMBS Classes Downgraded

Six classes of First Union National Bank - Chase Manhattan Bank Commercial Mortgage Trust commercial mortgage pass-through certificates, series 1999-C2, have been downgraded by Moody's Investors Service.The downgrades were as follows: class G, from Ba1 to Ba2; class H, from Ba2 to Ba3; class J, from Ba3 to B1; class K, from B1 to B3; class L, from B2 to Caa1; and class M, from B3 to Caa2. In addition, Moody's affirmed the ratings on eight other classes in the deal. The downgrades were attributed to "realized and anticipated losses from specially serviced loans, a decline in overall pool performance, and [loan-to-value] dispersion." The certificates are collateralized by 194 mortgage loans secured by commercial and multifamily properties, Moody's said. Twenty-seven loans have been liquidated, resulting in realized losses of approximately $6.8 million, and seven loans representing 2.6% of the pool are in special servicing, the rating agency said. Moody's can be found online at http://www.moodys.com.