Theater Deal Classes Downgraded

Three classes of An Affiliate of Entertainment Properties Trust commercial mortgage pass-through certificates, series 2003-EPR, have been downgraded by Moody's Investors Service.The downgrades were as follows: class D, from A1 to A2; class E, from A3 to Baa2; and class F, from Baa1 to Baa3. Moody's also affirmed the ratings of four classes in the transaction. The downgrades were attributed chiefly to uncertainty surrounding "the pace and sustainability of recovery" to pre-Hurricane Katrina levels of the Louisiana movie theaters that partially collateralize the deal, and secondarily to poor box-office performance for AMC and Loews, which operate 12 of the 15 theaters. The principal asset of the trust is a mortgage loan secured by the 15 standalone theaters in 10 states. AMC's and Loews' outlooks were changed from stable to negative by Moody's on Sept. 21 due to poor theater attendance for 2005. The rating agency can be found online at http://www.moodys.com.