Starwood CMBS Classes Downgraded

The ratings on classes C-1 and D-1 of Starwood Commercial Mortgage Trust's commercial mortgage pass-through certificates, series 1999-C1, have been lowered by Standard & Poor's Ratings Services.The downgrades were as follows: class C-1, from BBB to BBB-minus; and class D-1, from BBB-minus to BB-plus. In addition, the ratings on three other classes in the deal were affirmed. S&P attributed the downgrades to the decline in operating performance of the pool, which consists of one loan secured by 11 cross-collateralized and cross-defaulted hotels. "When Standard & Poor's affirmed its ratings on the transaction in June 2002, net cash flow for the pool had only declined 1% from its level at issuance," S&P said. "NCF has now declined 16% since issuance."