MSDW CMBS Classes Downgraded

Three classes of Morgan Stanley Dean Witter Capital I Trust commercial mortgage pass-through certificates, series 2002-IQ3, have been downgraded by Moody's Investors Service.The downgrades were as follows: class H, from Ba1 to Ba3; class J, from Ba2 to B2; and class K, from Ba3 to B3. Moody's also affirmed the ratings of 13 classes in the deal. The rating agency attributed the downgrades to LTV dispersion and anticipated losses from the only specially serviced loan, the Tulsa Distribution Center Loan, which represents 3.6% of the pool. The loan is secured by a 758,000-square-foot warehouse and distribution facility in Tulsa, Okla. Moody's said the facility was 100% leased at securitization to the Fleming Co., which declared bankruptcy in April 2003 and later rejected its lease. The rating agency has projected a loss of approximately $16.5 million from the loan. Moody's said its analysis found that 6.7% of the pool, excluding the specially serviced loan, has a loan-to-value ratio greater than 100%, compared with 1.0% at securitization.