Morgan Stanley CMBS Classes Downgraded

The ratings on three classes of Morgan Stanley Capital I Inc.'s commercial mortgage pass-through certificates, series 1998-CF1, have been lowered by Standard & Poor's Ratings Services.The downgrades were as follows: class C, from A to BBB; class D, from BB-plus to B; and class E, from BB to CCC. Classes D and E were removed from CreditWatch with negative implications, and the ratings on five other classes in the deal were affirmed. S&P attributed the downgrades to expected losses on the numerous delinquent and specially serviced mortgages, $14.1 million in accrued interest shortfalls, and expectations that the shortfalls will continue until the resolution of real estate owned health care assets. In addition, the master servicer, GMAC Commercial Mortgage Corp., has $16.1 million in outstanding advances to the trust, the rating agency said. S&P can be found on the Web at http://www.standardandpoors.com.