ASC CMBS Classes Downgraded

Six classes of Asset Securitization Corp.'s commercial mortgage pass-through certificates, series 1997-D5, have been downgraded by Fitch Ratings.The downgrades were as follows: class A-5, from BBB to BB; class A-6, from BB-plus to B; class A-7, from BB to B-minus; class B-1, from B to C; class B-2, from CCC to C; and class B-3, from CC to C. In addition, classes A-1A through A-1E were placed on Rating Watch Negative, and classes B-1 through B-5 were removed from Rating Watch Negative. Fitch attributed the downgrades to expected losses and interest shortfalls stemming from the declining value of the Hyde Park loan, which represents 2.8% of the pool, and several other specially serviced loans. "Principal losses are expected to affect classes B-1 through B-6, with most losses due to occur after the disposition of the Hyde Park loan, secured by a vacant hospital in Chicago," the rating agency said. Fitch can be found online at http://www.fitchratings.com.