Deutsche CMBS Classes Downgraded

Four classes of Deutsche Mortgage & Asset Receiving Corp.'s commercial mortgage pass-through certificates, series 1998-C1, have been downgraded by Fitch Ratings.The downgrades were as follows: class H, from BB-minus to B-plus; class J, from B-plus to B-minus; class K, from B-minus to CCC; and class L, from CC to C. The rating agency also placed classes G, H, and J on Rating Watch Negative, and affirmed the ratings on eight other classes in the deal. "The rating actions reflect continuing deterioration in the pool's collateral performance and a high percentage of loans expected to incur losses, as well as the accumulating interest shortfalls," Fitch said. "The interest shortfalls caused by the appraisal reductions, nonrecoverable expenses, loan modifications, and special servicing fees have affected subordinate classes, and permanent impairment to classes L and M [not rated by Fitch] is likely." The rating agency can be found online at http://www.fitchratings.com.