CMAC CMBS Classes Downgraded

Two classes of Commercial Mortgage Acceptance Corp. commercial mortgage pass-through certificates, series 1998-C1, have been downgraded by Moody's Investors Service.Class L was downgraded from Caa1 to Caa2, and class M was downgraded from Ca to C. In addition, Moody's upgraded three classes in the deal and affirmed the ratings on three others. The downgrades were due to realized losses from the specially serviced loans, dispersion in loan-to-value ratios, and concerns about the largest loan in the pool, the Two Chatham Center Loan. That $38 million loan, representing 5.8% of the pool, is secured by a leasehold mortgage on a 280,000-square-foot office building in downtown Pittsburgh. The property was 70.0% occupied as of September 2005, compared with 80.5% at last review and 99.0% at securitization, Moody's reported.