Heller CMBS Class Downgraded

Class M of Heller Financial Commercial Mortgage Asset Corp.'s mortgage pass-through certificates, series 1999 PH-1, has been downgraded from B-minus to CCC by Fitch Ratings.In addition, the rating agency upgraded five classes in the deal and affirmed the ratings on eight other Fitch-rated classes. The downgrade reflects an expected loss on the largest of four specially serviced loans in the pool, which is secured by an office building in Columbus, Ohio, Fitch said. The loan transferred to the special servicer, Lennar Partners Inc., due to a monetary default in February 2003 and is now real estate owned. An appraisal reduction of $10.8 million was taken in September 2003, and Fitch said it expects a loss to occur on the loan when it is sold from the trust.