Though for the very first time CMBS downgrades actually outpaced upgrades in the first quarter of this year, analysts said that Kmart-related rating actions were mostly responsible for the change in the usual trend.

However, even with the Kmart factor out of the way, the results were still not as good as previous quarters, and in the near term downgrades are still expected to trend up and upgrades may not be as forthcoming, analysts said.

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