Morgan CMBS Classes Downgraded

Two classes of Morgan Stanley Capital I Inc. commercial mortgage pass-through certificates, series 1999-LIFE 1, have been downgraded by Fitch Ratings.Class N was downgraded from B-minus to CC, and class O was downgraded from CC to C. Fitch also upgraded three classes and removed them from Rating Watch Positive, upgraded four other classes, and affirmed the ratings on seven classes in the transaction. The downgrade was attributed to an increase in expected losses on a specially serviced loan that was originally secured by three industrial buildings in Warren and Detroit, Mich. One property was sold in the last quarter of 2005, and recent appraisal valuations, combined with accrued advances, indicate that "significant losses are likely upon the disposition of the two remaining assets," the rating agency said.