On March 10, 2009, Standard&Poor's Ratings Services lowered its ratings on CB Richard Ellis Services Inc. (CBRE), including the long-term counterparty and senior secured credit ratings, to 'BB' from 'BB+'. We also assigned a recovery rating of '3' to CBRE's senior secured obligations, reflecting our expectation that lenders would realize meaningful (50% to 70%) recovery of principal in the event of a payment default. The outlook is negative. The downgrade reflects the weakening of CBRE's debt service capacity given the mounting cyclical downturn in the global commercial real estate (CRE) markets. Debt service, measured as EBITDA coverage of interest expense, deteriorated to 3.6x in 2008 from 5.9x in 2007, indicating the sensitivity of the company's financial performance and
