Marriott CMBS Classes Downgraded

Five classes of Host Marriott Pool Trust commercial mortgage pass-through certificates, series 1999-HMT, have been downgraded by Standard & Poor's Ratings Services.The downgrades were as follows: class C, from AA-minus to A-plus; class D, from A to BBB-plus; class E, from A-minus to BBB-minus; class F, from BBB to BB; and class G, from BBB-minus to B. The rating on class A was affirmed. The downgrades reflect a deterioration in the pool's operating performance, as indicated by a decline in debt service coverage and a rise in loan-to-value ratio since issuance, S&P said, pointing to a 19% falloff in net cash flow. The transaction consists of a single fixed-rate loan secured by eight cross-collateralized and cross-defaulted hotels, including the New York Marriott Marquis in Manhattan, which represented 51% of the pool's total net cash flow in 2002. S&P can be found online at http://www.standardandpoors.com.