by Calculated Risk on 7/14/2009 02:34:00 PM

Here come some Commercial Mortgage Backed Security (CMBS) rating cuts ...

UPDATE: From Dow Jones: Commercial Mtge-Backed Securities Index Hit By S&P Downgrades-Source

From S&P: S&P Lowers 23 Credit Suisse Comm Mortgage 2007-C3 Rtgs; 3 Afmd

NEW YORK (Standard & Poor's) July 14, 2009--Standard & Poor's Ratings Services today lowered its ratings on 23 classes of commercial mortgage-backed securities (CMBS) from Credit Suisse Commercial Mortgage Trust Series 2007-C3 and removed them from CreditWatch with negative implications...

The lowered ratings follow our analysis of the transaction using our recently released U.S. conduit and fusion CMBS criteria, which was the primary driver of the rating actions....

Here is an example: GSMS 2007-GG10 A4's (super senior with 30% credit support) were taken from AAA to BBB-. That is a significant cut, and below the street expectations.

This is the beginning of the rating cuts associated with the S&P June 4th release of The Potential Rating Impact Of Proposed Methodology Changes On U.S. CMBS