TrizecHahn CMBS Classes Downgraded

Six classes of TrizecHahn Office Properties Trust commercial mortgage pass-through certificates, series 2001-TZH, have been downgraded by Moody's Investors Service.The downgrades were as follows: class C-3, from A2 to A3; class C-4, from A2 to A3; class D-3, from Baa2 to Baa3; class D-4, from Baa2 to Baa3; class E-3, from Baa3 to Ba1; and class E-4, from Baa3 to Ba1. In addition, Moody's affirmed or confirmed the ratings on nine other classes in the deal. The transaction consists of five cross-defaulted and cross-collateralized first-mortgage loans secured by 26 office properties. The portfolio experienced an occupancy decline from 95.0% at securitization to 84.9% as of June 30, 2003, Moody's said. The top geographic concentrations are in Houston, Atlanta, and Washington, D.C. "In the near term, Moody's does not expect to see significant improvement in the Houston or Atlanta markets, which together comprise approximately 52.1% of the pool," Moody's said. In addition, the poor credit of the pool's largest tenant, Continental Airlines, remains a concern, the rating agency said. Moody's can be found online at http://www.moodys.com.