DLJ CMBS Classes Downgraded

Three classes of DLJ Commercial Mortgage Corp. commercial mortgage pass-through certificates, series 1999-CG3, have been downgraded by Moody's Investors Service.The downgrades were as follows: class B-7, from B2 to Caa1; class B-8, from B3 to Caa2; and class C, from Caa2 to Ca. In addition, Moody's upgraded six classes and affirmed the ratings on five classes in the transaction. The certificates are collateralized by 154 mortgage loans secured by commercial and multifamily properties, and the pool includes a conduit component, representing 90.9%, and two shadow-rated loans, the rating agency said. The downgrades were attributed to realized and expected losses from six specially serviced loans and to LTV dispersion. Based on Moody's analysis, 13.5% of the conduit pool has a loan-to-value ratio greater than 100%, compared with only 1.0% of the pool at securitization, the rating agency said. Moody's can be found online at http://www.moodys.com.