COMM CMBS Classes Downgraded

Four classes of COMM 2001-FL5 commercial mortgage pass-through certificates have been downgraded by Fitch Ratings and removed from Rating Watch Negative.The downgrades were as follows: class G, from BBB-minus to BB; class K-HH, from BBB-minus to BB-minus; and class L-HH, from BB-plus to B; and class M-HH, from BB to B-minus. In addition, Fitch upgraded two classes in the deal, affirmed the ratings on 10 other classes, and removed one of the 10 from Rating Watch Negative. The rating agency attributed the downgrades chiefly to declines in the performance of two hotel loans: the Hyatt Regency in Houston and the Irvine Marriott in Irvine, Calif. "The performance decline at the Houston Hyatt is particularly severe," Fitch said. ".... Based on servicer reports, actual net cash flow dropped 60% since issuance." In addition, Fitch expressed concern about refinance risk, since all the loans mature in 2004. The rating agency can be found on the Web at http://www.fitchratings.com.