Fitch Eyes Lehman CMBS Classes

Three classes of Lehman Brothers Inc.'s commercial mortgage pass-through certificates, series 2006-CCL-C2, have been placed on Rating Watch Negative by Fitch Ratings.The affected securities are classes M, ASH-1, and ASH-2. Fitch also upgraded one class in the transaction and affirmed the ratings of six other classes. The negative rating actions were attributed to the transfer of the Avalon at Seven Hills loan, representing 10.9% of the pool, to special servicing. The loan is secured by a former multifamily property in Henderson, Nev. "There is an oversupply of condominiums in the Las Vegas metropolitan area, and unit sales have occurred slower than anticipated at issuance," the rating agency reported. "Special servicing fees and other fees associated with the loan's resolution could result in interest shortfalls to the trust."