Moody's Reviewing Lucent-Related CMBS

Moody's Investors Service has reported that it is reviewing for possible downgrade the ratings of about $124.1 million of commercial mortgage-backed securities with ties to collateral leased solely by the troubled Lucent Technologies Inc.The securities affected comprise six classes of GMAC Commercial Mortgage Securities, Inc., Commercial Mortgage Pass-Through Certificates, Series 2002-LT. The possible downgrades were prompted by downgrades of Lucent's long-term corporate debt ratings by Moody's. The Lucent corporate downgrade reflects "the severity of the decline in Lucent's revenue base, the magnitude of its current and prospective cash burn rate, lack of clarity regarding the nature and timing of a rebound in revenue and the reduced liquidity sources following the cancellation of the $1.5 billion bank facility and $500 million accounts receivable securitization vehicle."