Moody's Downgrades Wachovia CMBS Classes

Two classes of Wachovia Bank Commercial Mortgage Trust commercial mortgage pass-through certificates, series 2004-WHALE 4, have been downgraded by Moody's Investors Service.Class K was downgraded from Baa3 to Ba2, and class RC was downgraded from Baa3 to Ba3. Moody's also affirmed or confirmed the ratings of 20 Wachovia CMBS classes. The downgrades were attributed to a lowered shadow rating of a loan on the Ritz-Carlton-New Orleans Hotel. The loan is secured by a mixed-use complex consisting of a 527-room Ritz-Carlton Hotel, an Iberville Suites Hotel, a spa, a 23,000-square-foot retail area, and a parking garage. The property is closed due to substantial damage from Hurricane Katrina and is not expected to reopen before late 2006, Moody's said. "Due to the uncertainty of projecting the overall hotel market performance for New Orleans as well as the expected performance for the Ritz-Carlton property, Moody's current analysis reflects a higher risk profile for this loan than at securitization," the rating agency said. Moody's can be found online at http://www.moodys.com.