With volatile economic conditions and the havoc caused by the recent terrorism attacks on the World Trade Center, CMBS analysts are starting to look at the components of the deals' structures, especially in light of the fact that the sector has, until recently, existed in a low-stress environment.

In a teleconference last week, analysts from Moody's Investors Service warned that delinquency rates on commercial mortgage loans may rise and CMBS structures may increasingly be tested going forward. The ratio of upgrades to downgrades on CMBS deals, which has always been heavily in favor of the former, would probably balance out due to current conditions.

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