Moody's Investors Service downgraded seven classes of Falcon Financial LLC's series 2003-1 auto dealership franchise loan ABS Wednesday, due primarily to the deterioration of a single loan in the pool. The loan, which makes up 6.8% of the total pool, was made to The Dodge of Midlothian automobile dealership, which has since lost floorplan funding from DaimlerChrysler Financial Services N.A. The transaction priced in January 2003 via Goldman Sachs.

Fitch Ratings lowered the class E to 'BB+' from 'BB', and the class F to 'CCC' from 'B'. According to Fitch, the party operating the dealership has filed a complaint against Daimler Chrysler for substantially restricting its ability to stock its floorplan, and no longer financing its customers. The borrower, Gorman Family Holdings, owns the real estate, valued at $5.85 million in an updated appraisal.

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