Fitch Plans No Ahold-Linked CMBS Downgrades

Fitch Ratings has announced that it does not plan to downgrade any of the 77 U.S. commercial mortgage-backed securities deals linked to Koninklijke Ahold NV despite its recent downgrade of the retail grocer.Nine of the deals have exposure to Ahold in excess of 5% of their respective transaction balances, the rating agency said. "There is no need to downgrade due to the diversity of the deals, accompanied with the credit enhancement provided by the most subordinate tranches," said Lauren Cerda, a Fitch director. "Generally, the grocer's stores are located within in-fill locations and have large floor plates which would be attractive to another grocery store operator." Grocery chains operated by Ahold include Stop and Shop, Giant, Tops, BI-LO, and Bruno's. Fitch can be found on the Web at http://www.fitchratings.com.