JP Morgan CMBS Classes Downgraded

Two classes of J.P. Morgan Commercial Mortgage Finance Corp.'s mortgage pass-through certificates, series 1999-C8, have been downgraded by Fitch Ratings.Class H was downgraded from BB-minus to B-plus, and class J was downgraded from CC to C. In addition, Fitch affirmed 10 classes in the deal. The downgrades were attributed to expected losses on a specially serviced loan. Fitch said five loans are currently in special servicing, the largest of which is secured by a vacant office property in Boston that had been 100% occupied by a government tenant whose lease expired in January 2004. The special servicer, ARCap Servicing, Inc., is pursuing a note sale on the property. "Based on a recent appraisal value, losses are expected at the time the loan is liquidated from the trust," Fitch said, adding that it expects the losses to reduce the balance of class K to zero, at which time the rating of class K will be withdrawn.