Five classes of Wachovia Bank Commercial Mortgage Trust commercial mortgage pass-through certificates, series 2004-WHALE 4, have been placed on review for possible downgrade by Moody's Investors Service.The affected securities are classes H, J, K, GP-1, and GP-2. In addition, Moody's upgraded five classes and affirmed the ratings on six other classes in the transaction. The certificates are collateralized by six loans ranging in size from 9.1% to 34.2% of the pool. Moody's said the negative rating actions were due to a decline in the credit quality of the Bellemead Portfolio Loan, which is secured by eight office properties in Troy, Mich. "The occupancy of the Troy properties, at 81.0%, has been stable since securitization, however there is significant near-term lease rollover exposure as leases for 26.0% of the premises expire between now and August 2007," Moody's said. In addition, four properties representing 41% of the portfolio are 100% leased to a single tenant, Electronic Data Systems. "The portfolio is now less diverse, more concentrated in a weak market, has significant lease rollover, and single-tenant exposure," the rating agency said. The trust balance includes the pooled loan and a $5.1 million nonpooled loan that secures nonpooled classes GP-1 and GP-2.

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