Class M of Heller Financial Commercial Mortgage Asset Corp. mortgage pass-through certificates, series 1999 PH-1, has been downgraded from Caa1 to Caa2 by Moody's Investors Service.In addition, Moody's upgraded three classes and affirmed the ratings of six classes in the transaction. The downgrade was attributed to realized and expected losses from specially serviced loans and loan-to-value dispersion. Based on Moody's analysis, 20.5% of the conduit pool has an LTV greater than 100%, compared with 11.7% at last review and 1.2% at securitization, the rating agency said. The certificates are collateralized by 156 mortgage loans ranging in size from less than 1.0% of the pool to 7.7%.

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