Fitch: Katrina May Affect Some CMBS

Fitch Ratings has reported that the impact of Hurricane Katrina may adversely affect certain Fitch-rated commercial mortgage-backed securities deals.The rating agency said it has identified 18 transactions with greater than a 5% property concentration in the area, with concentrations ranging as high as 52%. Fitch said it is especially concerned with the following 12 transactions, which provide limited or no credit support to Fitch-rated classes: ASC 1996-MD6, CALFS 1997-CTL1, CSFB 2004-C2, EPT 2003-EPR, GECMC 2000-1, GMACC 2001-C1, MSCI 2005-XLF, NLFC 1998-1, RMF 1997-1, SLCMT 1997-C1, TIAA 1999-1, and WBCMT 2004-WHL3. Since CMBS borrowers are required to carry property insurance in the United States, Fitch said it expects "minimal losses" because repair costs will ultimately be covered. The rating agency said it has contacted the master servicers of the affected transactions and expects to begin receiving property status reports in the next two weeks. Fitch can be found online at http://www.fitchratings.com.