GS Mortgage CMBS Classes Downgraded

The ratings on three classes of GS Mortgage Securities Corp. II's commercial mortgage pass-through certificates, series 1999-C1, have been lowered by Standard & Poor's.The ratings on seven other classes of the same deal were affirmed. "In December 2002, Standard & Poor's lowered its ratings on classes G and H due to the fact that five of the 10 delinquent loans in the pool at that time were in REO or foreclosure, and indications of value for the three lodging properties that were in REO at that time suggested that losses would be realized upon liquidation of those loans," S&P said. "Since that time, two of those REO lodging loans have been liquidated, resulting in a combined realized loss of $2.3 million. As a result, a total of $5.4 million in losses have been realized by the trust to date." S&P can be found online at http://www.standardandpoors.com.