Bear Stearns CMBS Classes Downgraded

Three classes of Bear Stearns Commercial Mortgage Securities Inc., commercial mortgage pass-through certificates, series 1998-C1, have been downgraded by Moody's Investors Service.The downgrades were as follows: class H, from Ba3 to B1; class I, from Caa1 to C; and class J, from Caa2 to C. Moody's also upgraded two classes and affirmed the ratings on six others. The downgrades were due to realized and expected losses from the specially serviced loans and dispersion in loan-to-value ratios, the rating agency said. Moody's said approximately 15.9% of the pool has an LTV in excess of 100%, compared with 8.7% at securitization. The certificates are collateralized by 138 mortgage loans on properties located in 24 states, with the top 10 loans representing 27% of the pool.