Morgan Stanley CMBS Classes Downgraded

The ratings on two classes of Morgan Stanley Capital I Inc.'s commercial mortgage pass-through certificates, series 1997-XL1, have been lowered by Standard & Poor's Ratings Services.The downgrades were as follows: class G, from BB to B, and class H, from B to CCC. The ratings on four other classes in the deal were raised, and three others were affirmed. S&P attributed the downgrades to the deterioration in the performance of four of the seven remaining nondefeased loans, which represent 25% of the outstanding pool balance. The loans are: Grand Kempinski Hotel, secured by a luxury hotel in Dallas; Mark Centers Pool, secured by 17 community and neighborhood retail shopping centers in seven Eastern states; Westgate Mall, secured by a regional mall in Fairview Park, Ohio; and Westshore Mall, secured by a mall in Holland, Mich. S&P can be found on the Web at http://www.standardandpoors.com.