Franchise Loan Classes Downgraded

Eight classes of the Morgan Stanley Dean Witter Owner Trust 2000-F1 franchise loan deal have been downgraded by Fitch Ratings and will remain on Rating Watch Negative.The downgrades were as follows: class X and S participating interests, from AAA to AA; class B, from AA to A-plus; class C, from A to BBB-plus; class D, from A-minus to BBB; class E, from BBB to BB-minus; class F, from BBB-minus to B-plus; and class G, from BB to B-minus. The rating agency attributed the downgrades to defaults of three borrowers totaling $20.7 million. As of the October reporting date, the transaction had incurred cumulative defaults of approximately $44.2 million, nearly 19% of the original principal balance, Fitch said. The pool consists of collateral from the Franchise Finance Co. of America (now known as GE Capital Franchise Finance) and Morgan Stanley Dean Witter Mortgage Capital, a now-inactive MSDW conduit.