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To: Mark Adams who wrote (161558)	4/25/2002 3:07:14 PM
From: Mark Adams	Respond to of 436258

S&P: Moderating CMBS Delinquency Rates Present in 1Q NEW YORK, April 25 /PRNewswire-FirstCall/ -- "The delinquency rate in pooled U.S. CMBS transactions advanced to 2.05% in the first quarter from 1.70% at year-end. This is almost double the rate at the same time last year. Although the delinquency rate continues on its upward path, the 20% growth in the first quarter of 2002 slowed from the 35% growth of the prior quarter," notes Roy Chun, managing director in Standard & Poor's Structured Finance Surveillance group. The slow down in the growth rate of delinquent loans in pooled U.S. CMBS transactions is examined in "Pace of U.S. Delinquency Growth Slows in the First Quarter." The article discusses the overall delinquency rate, highlighting the continued struggle in the lodging sector, as well as recent trends in the U.S. office and retail sectors. "The most notable and significant rating event during the first quarter was the deteriorating corporate credit rating of Kmart Corp. (Kmart). The company's bankruptcy filing in January resulted in a large number of CMBS dependent issue downgrades," notes Larry Kay, director in Standard & Poor's Structured Finance Surveillance group, in "Domestic CMBS Downgrade Activity Prompted by Kmart Bankruptcy." The article underscores the impact of the Kmart bankruptcy and the subsequent downgrades. Also discussed is the slowdown in upgrade activity compared to prior quarters. Both articles appear in the "CMBS Quarterly Review: First Quarter 2002." The newsletter is available on RatingsDirect, Standard & Poor's Web-based credit analysis system. The newsletter can also be found on Standard & Poor's Web site at standardandpoors.com . Select Forum. Under Ratings commentary, select Structured Finance and then, CMBS. SOURCE Standard & Poor's /CONTACT: Roy Chun, +1-212-438-2430, or Larry Kay, +1-212-438-2504,both of Standard & Poor's/