Fitch Downgrades 2 & Upgrades 1 Class of Nomura Asset Secs Corp. 1998-D6.

NEW YORK -- Fitch Ratings downgrades Nomura Asset Securities Corporation, commercial mortgage pass-through certificates, series 1998-D6, as follows:

-- $18.6 million class B-5 to 'B-' from 'B';

-- $27.9 million class B-6 to 'CCC' from 'B-'.

The following class is upgraded by Fitch:

-- $204.7 million class A-3 to 'AA' from 'AA-'.

In addition Fitch affirms the following classes:

-- $212.9 million class A-1A at 'AAA';

-- $1.8 billion class A-1B at 'AAA';

-- $382.7 million class A-1C at 'AAA';

-- Interest Only (IO) class PS-1 at 'AAA';

-- $223.4 million class A-2 at 'AAA';

-- $167.5 million class A-4 at 'A-';

-- $55.8 million class A-5 at 'BBB+';

-- $37.2 million class B-2 at 'BB';

-- $37.2 million class B-3 at 'BB-';

-- $18.6 million class B-5 at 'B-'.

Fitch does not rate the following classes:

-- $158.2 million class B-1;

-- $65.1 million class B-4;

-- $43.8 million class B-7;

-- $942 class B-7H;

-- IO class A-CS1.

The downgrade of classes B-5 and B-6 is the result of expected losses on specially serviced loans which will negatively impact the credit enhancement levels of these classes. Losses are expected on six loans (1.61%) of the eleven (2.7%) loans currently in special servicing. The non-rated class B-7 is sufficient to absorb all expected losses.

The upgrade of class A-3 is the result of stable portfolio performance and improved credit enhancement levels resulting from loan payoffs, defeased loans, and scheduled amortization.

As of June 2004 distribution date, the transaction's aggregate principal balance has decreased 8.1%, to $3.4 billion from $3.7 billion at issuance. The eleven specially serviced loans (2.7%) are comprised of, two 60-day delinquent loan (0.1%), five 90-day delinquent loans (0.9%), a real estate owned (REO) loan (0.5%), two loans in foreclosure (0.4%), and one loan (0.8%), which was transferred to the special servicer as a result of the borrower filling Chapter 11 bankruptcy.

The largest specially serviced loan (0.5%), Commerce Point, is secured by a 236,789 square feet (sf) office building located in Arlington Heights, IL. As of May 2003 the property was 46% occupied and no new leasing activity has occurred to date. The trust acquired the property via a deed-in-lieu in April 2004 and is actively leasing the property.

The second largest loan (0.5%), in special servicing is Best Buy - City of Industry. The loan is cross-collateralized and cross-defaulted (CC/CD) with the Penrose and Crestview loans also in the transaction. The CC/CD loans are 90-days delinquent and the special servicer is in the process of foreclosing on the assets.

Fitch reviewed the six credit assessments as part of its analysis. The debt service coverage ratio (DSCR) for each loan is calculated using servicer provided net operating income less required reserves divided by debt service payments based on the current balance using a Fitch stressed refinance constant.

The Bristol Portfolio (3.8%) is secured by 15 hotels located in five states, with a total of 4,201 rooms. In January 2004 three properties (Holiday Inn - Jackson North, Crowne Plaza Houston and Crowne Plaza Downtown Jackson) were substituted for three additional properties (Embassy Suites Park Central, Holiday Inn-Northeast and Holiday Inn-Knoxville). Fitch did not receive year end (YE) 2003 financials for the new properties. Net operating income (NOI) for these properties was derived from annualized year-to-date (YTD) 9/30/2003 financials. The portfolio's combined revenue per available room (RevPar) as of YE 2003 and YTD 9/30/2003 was $45.87 compared to $48.02 as of YE 2002 and $49.53 since issuance. Fitch maintains a below investment grade credit assessment.

Innkeepers Portoflio (1.1%) is secured by eight hotels located in six states, with a total of 1,068 rooms. Fitch reviewed annualized YTD 9/30/2003 financials provided by the servicer in the absence of YE 2003 financials. The portfolio's combined RevPar as of YTD 9/30/2003 was $58.93 compared to $65.69 as of YE 2002 and $67.94 at issuance. Fitch maintains a below investment grade credit assessment.

The Westin Grand Cayman (0.5%) is secured by a 341 room luxury resort hotel located on the Island of Grand Cayman along Seven Mile Beach. As of YE 2003 the RevPar was $114.4 compared to $128.88 as of YE 2002 and $151.2 at issuance. Fitch maintains a below investment grade credit assessment based on the hotel's deteriorating performance.

The transaction's remaining three credit assessments: Fox Plaza (4.8%), Burnham Pacific (3.7%) and Morris Corporate Center (1.0%), maintain investment grade credit assessments.