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To: Keith Feral who wrote (75894)	4/7/2009 10:14:29 AM
From: Paul Kern	Read Replies (3) \| Respond to of 118717

S&P Puts $96.6B In CMBS On Watch For Possible Downgrade Last update: 4/7/2009 10:09:45 AM DOW JONES NEWSWIRES Standard & Poor's Ratings Services put its ratings on $96.6 billion of commercial mortgage-backed securities on watch for possible downgrade. The watch includes 2,648 classes of commercial mortgage pass-through certificates from 170 conduit and fusion transactions, 45 floating-rate CMBS transactions and 49 classes from seven large loan fixed-rate and single-borrower CMBS transactions. The ratings agency had said Monday that many of its ratings on commercial mortgage-backed securities might no longer be appropriate because of new estimates on defaults and loan losses. It warned that "large-scale" placement of CMBS on watch for downgrade would begin in coming days. The S&P analysis continues the steady drumbeat of bad news for commercial real estate market, which had held up better than the residential real estate market until it began to deteriorate quickly at the end of 2008 as the U.S. recession deepened. Retail and hotel properties have been hit especially hard. S&P said the warnings of possible cuts reflect its initial re-evaluation of all the loans in the transactions. The ratings agency said Monday the delinquency rate on commercial real estate has nearly tripled since September, while property sales tumbled 80% in February from a year earlier as prices fell 17%. It had said it expected the worst results for bonds issued in 2007. -By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com (END) Dow Jones Newswires April 07, 2009 10:09 ET (14:09 GMT)