LB CMBS Classes Downgraded

Two classes of LB Commercial Conduit Mortgage Trust II's commercial pass-through certificates, series 1996-C2, have been downgraded by Fitch Ratings.Class G was downgraded from B to B-minus, and class H was downgraded from B-minus to CC. The ratings on the remaining Fitch-rated classes were affirmed. "The downgrades are primarily due to the revaluation of the eight loans (10.5%) collateralized by hotels formerly owned and operated by Lodgian Inc.," Fitch said. Lodgian emerged from Chapter 11 bankruptcy protection in November. Eight of the original nine loans in the deal are now real estate owned, and the special servicer, Criimi Mae Services LP, plans to list the properties for sale shortly, the rating agency said. Fitch can be found online at http://www.fitchratings.com.