Watch listings done by Moody's Investors Service and Standard & Poor's more often lead to CMBS downgrades than those put out by Fitch Ratings, said a recent report by Nomura Securities International. Aside from this, Nomura said that CMBS downgraded by S&P or Fitch will most likely experience repeat downgrades compared to those that were taken down by Moody's.

The report, which is called "CMBS Watch Listings, Downgrades and Surveillance," focuses on three major issues. It looks at how well watch listings predict CMBS downgrades as well as the differences in credit quality deterioration for CMBS that are rated at different levels. The study, which covers 335 downgraded CMBS tranches, also examines instances in which CMBS go through repeat and multiple downgrades.

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