With rising delinquencies and declining property values, interest shortfalls may occur more frequently on rated CMBS classes, negatively impacting the ratings on those classes.

Standard and Poor's said that as of October 2001 about 80 multi-borrower transactions had accumulated interest shortfalls out of 248 rated CMBS deals. The rating agency stated that most of the shortfalls occurred in subordinated certificates that were not rated by S&P.

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