Lehman CMBS Classes Downgraded

Three classes of Lehman Brothers Floating Rate Commercial Mortgage Trust commercial mortgage pass-through certificates, series 2006-CCL C2, have been downgraded by Moody's Investors Service.The downgrades were as follows: class K, from Baa1 to Baa3; class L, from Baa2 to Ba2; and class M, from Ba2 to B2. In addition, Moody's upgraded four classes and affirmed the ratings on eight other classes in the deal. The downgrades were attributed to the poor performance of the following loans: The Crossings at Otay Ranch, Chula Vista, Calif.; Walker Square & River Bend, Charlottesville, Va.; Avalon at Seven Hills, Henderson, Nev.; and Village Oaks, Tampa, Fla. (The trust contains transitional assets that are being converted for sale as condominiums.) The poorly performing loans are located in "soft condominium markets" and are performing below expectations, the rating agency said.