CSFB CMBS Classes Downgraded

Two classes of Credit Suisse First Boston's commercial mortgage pass-through certificates, series 2005-CND2, have been downgraded and removed from Rating Watch Negative by Fitch Ratings.Class M was downgraded from BBB-minus to BB, and class N was downgraded from BBB-minus to BB-minus. In addition, Fitch affirmed the ratings on 17 classes in the deal. The downgrades were attributed to various concerns, including geographic concentration in New York and Florida, the fact that the five largest loans represent 90.1% of the transaction, oversupply in Florida condominium markets, and delays at the largest loan in the transaction, Manhattan House (54.6%). Four of the eight remaining loans are in Florida, three of which are secured by multifamily properties that are no longer being converted to condos and are being re-leased as rental properties. Fitch can be found online at http://www.fitchratings.com.