Terror-Linked CMBS Deals Upgraded

Moody's Investors Service has upgraded 12 classes in two commercial mortgage-backed securities deals that were downgraded in September as a result of concerns about terrorism insurance.The affected securities, which were returned to their originally assigned ratings, were classes A-1, A-2, A-2F, X-1, and B of 280 Park Avenue Trust commercial mortgage pass-through certificates, series 2001-XL280, and classes A-1, A-1F, A-2, A-2F, X, XP, and XC of COMM 2001-J2 Mortgage Trust commercial mortgage pass-through certificates, the rating agency said. Since the passage of the Terrorism Risk Insurance Act of 2002 in November, property owners have been able to buy increased levels of terrorism insurance, Moody's said. Boston Properties Inc., the sponsor of both the 280 Park Avenue property and Citigroup Center (the largest asset in COMM 2001-J2), recently renewed an all-risk property insurance program that includes coverage for terrorist acts, the rating agency said. Moody's can be found on the Web at http://www.moodys.com.