Fitch Upgrades 26% of CMBSs Reviewed in 2000, Downgrades 4%

NEW YORK CITY-Fitch, the international rating agency based here, upgraded 26% of the 298 commercial mortgage-backed securities reviewed last year, down slightly from the 28% upgraded in 1999. As in the past, the majority of the upgrades are attributed to increases in subordination levels resulting from paydowns. Seventy-two percent of the upgrades involved tranches that previously had investment-grade ratings. The value of the securities totaled $124.3 billion.

Downgrades, on the other hand, accounted for only 4% of the reviews, a total of 12. Except for two downgrades with ratings moving from BBB to BBB-, all the others occurred on below-investment-grade classes. Market sectors affected included the health care industry, retail factory outlets, credit tenant lease deals and limited service hotels.