Morgan Stanley CMBS Classes Downgraded

Three classes of Morgan Stanley Capital 1 Inc. commercial mortgage pass-through certificates, series 1999-FNV1, have been downgraded by Fitch Ratings.The downgrades were as follows: class L, from B-minus to CCC; class M, from CCC to C; and class N, from CC to C. In addition, 12 classes from the deal were affirmed by Fitch. The downgrades were attributed to increased expected losses on some of the seven specially serviced loans. The largest such loan (3.1%) is secured by an office property in Quincy, Mass., and is real estate owned, the rating agency said. The property has suffered declines in occupancy, and the most recent appraisal value indicates a "significant loss" upon liquidation, Fitch said. The second-largest loan (1.5%) is a retail property in Sevierville, Tenn., that is over 90 days delinquent and in bankruptcy.