Two classes from two issues of LaSalle Commercial Mortgage Securities Inc. commercial mortgage pass-through certificates have been downgraded by Moody's Investors Service.The M classes of series 2006-MF2 and 2006-MF3 were downgraded from B3 to Caa1. Moody's also affirmed the ratings on 24 classes from the two transactions. The series 2006-MF2 certificates are collateralized by 447 mortgage loans, of which 176, representing 37.6% of the pool, are on the master servicer's watchlist, the rating agency reported. Eighteen loans are in special servicing, and Moody's said it is estimating approximately $2.3 million of losses from the specially serviced loans. The series 2006-MF3 certificates are collateralized by 424 mortgage loans, of which 135, representing 31.8% of the pool, are on the master servicer's watchlist. Seventeen loans are in special servicing, and Moody's is estimating approximately $3.0 million of losses from the specially serviced loans. The rating agency attributed the downgrades to "the large number of specially serviced loans and the projected losses."

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