Salomon CMBS Classes Downgraded

Four classes of Salomon Brothers Mortgage Securities VII Inc., CDC Securitization Corp., commercial mortgage pass-through certificates, series 2002-CDC, have been downgraded by Moody's Investors Service.The downgrades were as follows: class X-2B, from Baa3 to Ba1; class H-DEN, from Baa1 to Baa2; class J-DEN, from Baa2 to Baa3; and class K-DEN, from Baa3 to Ba1. Moody's also upgraded five classes in the deal and affirmed the ratings on nine other classes. The certificates are collateralized by participation interests in four mortgage loans, all of them secured by first liens on 29 commercial properties in five states, the rating agency said. All the loans are floating-rate and interest-only. The downgrades were attributed to the poorer performance of the Denholtz Portfolio Loan, the largest in the pool ($94.6 million, or 49.5%), which is secured by 26 office and office-flex properties in seven states. The portfolio totals approximately 2.6 million square feet and was 73.3% occupied as of June 2004, compared with 82.0% at securitization, Moody's said. The rating agency can be found online at http://www.moodys.com.