Morgan Stanley CMBS Class Downgraded

Class J of Morgan Stanley Capital I Inc.'s commercial mortgage pass-through certificates, series 1998-XL1, has been downgraded from B-plus to CCC by Fitch Ratings.In addition, Fitch upgraded three classes in the deal and affirmed the ratings on seven. The downgrade was attributed to the continuing decline in the performance of the Charlestowne Mall in Illinois. The certificates are collateralized by seven mortgage loans (68.3% of the pool) and government securities that support the defeasance of two of the original loans (31.7%), the Del Coronado Hotel and the Magellan Pool. With the exception of the Charlestowne Mall, all loans are performing at or above expectations at issuance, Fitch reported.