Developer Noel Smyth's Alburn Real Estate Capital's commercial mortgage loan has been downgraded by ratings agency Fitch which also said that the Class A and B notes remain on "outlook negative".

The loan is secured by a first ranking mortgage over 45 commercial properties in the UK, comprising 29 offices, 13 industrial properties, two retail properties and a shopping centre.

According to the last valuation the shopping centre has seen a market value decline of 60% since the securitisation in 2007. "As previously stated, the agency considers any near-term improvement in the asset's performance to be improbable," Fitch said.

The loan on the portfolio was restructured in September and the original LTV covenant was waived until April 2011.