ASC CMBS Class Downgraded

Class A-5 of Asset Securitization Corp. commercial mortgage pass-through certificates, series 1997-D5, has been downgraded from BB to B-plus and removed from Rating Watch Negative by Fitch Ratings.Fitch also affirmed the ratings on classes A-6 and A-7 of the deal and removed them from Rating Watch Negative and affirmed the rating on five other classes. The downgrade "reflects the losses expected on several specially serviced loans, with a majority of losses due to occur after the disposition of the Hyde Park loan, secured by a vacant hospital in Chicago," the rating agency said. The expected principal losses to the Hyde Park loan are attributable to unpaid principal balance, legal fees, and assumed future legal fees, accruing at approximately $500,000 per month, Fitch said. In addition, Fitch said it expects losses of approximately $10 million on four other specially serviced loans.