Moody's Eyes Morgan Stanley CMBS

Ten classes of Morgan Stanley Capital I Inc. commercial mortgage pass-through certificates, series 2003-TOP11, have been placed on review for possible downgrade by Moody's Investors Service.The affected securities are classes C through H and J through M. The rating actions were attributed to concerns about possible losses related to two specially serviced loans. The Alabama/Arizona Warehouse/Distribution Loan (2.3% of the pool) is secured by two warehouse distribution facilities in Montgomery, Ala., and Glendale, Ariz., each 100% occupied by KB Toys Inc., which filed for Chapter 11 bankruptcy protection in January 2004, Moody's said. KB Toys has closed 389 stores and has announced plans to close 140 to 240 more by Jan. 31, according to the rating agency. The Troy Technology Park Portfolio Loans (2.2% of the pool) consist of three cross-collateralized and cross-defaulted loans secured by 11 flex/industrial buildings in Troy, Mich. The major tenant is General Motors, which has vacated approximately 20% of the premises and indicated that it will vacate the remainder of its space shortly, Moody's said. The rating agency can be found online at http://www.moodys.com.