Three classes of MeriStar Commercial Mortgage Trust commercial mortgage pass-through certificates, series 1999-C1, have been downgraded by Moody's Investors Service.The downgrades were as follows: class B, from Aa3 to A3; class C, from Baa1 to Ba1; and class D, from Ba1 to B2. In addition, Moody's confirmed the ratings of three classes in the same transaction. The rating agency attributed the downgrades to poor pool performance. The principal asset of the trust is a mortgage loan secured by 19 hotel properties located in 10 states. As of the Oct. 5 distribution date, the transaction's principal balance has decreased by approximately 7.9%, from $330.0 million to $304.0 million, as a result of amortization, Moody's said. The properties are owned by entities associated with MeriStar Hospitality Corp., which owns 79 primarily upscale hotels in 23 states. "In spite of recovery in many hospitality markets, performance at the collateral properties continues to decline," Moody's said, citing in particular the Somerset (N.J.) Marriott, the Hilton Sacramento (Calif.), and the Crowne Plaza San Jose (Calif.).
