Fitch Eyes Morgan Stanley CMBS Classes

Classes E and F of Morgan Stanley Dean Witter Capital commercial mortgage pass-through certificates, series 2001-PPM, have been placed on Rating Watch Negative by Fitch Ratings.The classes were placed on the watchlist due to expected interest shortfalls, Fitch said. Interest shortfalls began in January 2005 due to the modification of three cross-collateralized and cross-defaulted specially serviced loans. In addition, the special servicer liquidated an office property in Bensalem Township, Pa., on Feb. 1, the rating agency said. "This liquidation will result in a one-time liquidation fee, which will be incurred at the February 2005 distribution," Fitch said. "The payment of this fee will result in additional interest shortfalls that will affect the class E and F certificates."