Nomura CMBS Class Downgraded

The rating on class B-2 of Nomura Asset Securities Corp.'s commercial mortgage pass-through certificates, series 1995-MDIII, has been lowered from B to CCC by Standard & Poor's.The rating on class B-1 of the same deal was placed on CreditWatch with negative implications. S&P attributed the rating actions to concerns about the decline in the performance of the 305-room Grand Cayman Marriott Beach Resort. A $35.2 million mortgage secured by the hotel was transferred to the special servicer in February after the borrower failed to maintain the debt service coverage ratio required by the loan documents, S&P said. "This was coupled with the borrower's request for debt service relief and use of required reserves to cover operating expenses," the rating agency said.