ASC CMBS Classes Downgraded

Two classes of Asset Securitization Corp.'s commercial mortgage pass-through certificates, series 1997-D5, have been downgraded by Fitch Ratings and will remain on Rating Watch Negative.The downgrades were as follows: class B-1, from B-plus to B; and class B-2, from B to CCC. In addition, classes B-3, B-4, and B-5 remain on Rating Watch Negative, and the ratings on 13 other classes of the same series were affirmed. Fitch attributed the downgrades to the increased number of loans of concern and expected losses on existing loans of concern. "There are several old Builder's Square properties and Kmart properties whose leases to Kmart Corp. were rejected in bankruptcy," Fitch said. "The aggregate loss severity on the loans secured by these properties is expected to be in excess of 50% of the loan amount." Fitch can be found online at http://www.fitchratings.com.