Moody’s affirmed the speculative grade rating of one interest-only class from a 1997 commercial mortgage-backed securities deal in another example of
The move affects $2.2 million of notional structured securities, according to Moody’s.
The rating on class X-1 from Morgan Stanley Commercial Mortgage Trust, Commercial Mortgage pass through certificates, series 1997-WF11 was affirmed at Caa3.
However, Moody’s noted, “Depending on the timing of loan payoffs and the severity and timing of losses from specially serviced loans, the credit assessments for the principal classes could decline below their current levels.
“If future performance materially declines, the expected credit assessments of the referenced tranches may be insufficient to support the current ratings of the interest-only classes.”
