Last fall, Moody’s downgraded 11 single asset and large loan CMBS transactions due to their lack of terrorism insurance coverage. Since the Terrorism Risk Insurance Act of 2002 was signed into law last November, many commercial owners who previously could not obtain terror insurance have bought coverage through TRIA. Boston Properties recently renewed its all-risk property insurance program that includes coverage for certified acts of terrorism, reports Moody’s.
"The increased amount and improved terms for terrorism coverage of the current policy are appropriate for the highest rating levels assigned by Moody’s. Moody’s is therefore upgrading the ratings of the securities to those originally assigned," read a statement from Moody’s.
Included in the ratings upgrade are 280 Park Avenue Trust and COMM 2001-J2 Mortgage Trust, both commercial mortgage pass-through certificates. A total of 12 classes of 280 Park Avenue Trust and COMM 2001-J2 Mortgage Trust were upgraded by Moody’s.
