$97.9MM KS Mortgage 1995-1 Ctfs Upgraded By Fitch.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 4, 2000 KS Mortgage Capital, L.P.'s commercial mortgage pass-through certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size , series 1995-1 are upgraded as follows: the $16.5 million class B to `AAA' from `AA+', the $13.2 million class C to `AA-' from `A+' and the $11.6 million class D to `A-' from `BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. +'. In addition, the $11.8 million class A-2 and interest-only class IO are affirmed at `AAA', the $16.5 million class E at `BB+' and the $8.3 million class F at `B'. Class G was not rated by Fitch. The rating actions follow Fitch's annual review of the transaction, which closed in Aug. of 1995. The upgrades are primarily attributable to significant increases in subordination levels due to amortization, prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. , and matured loans. As of the July 2000 distribution date, the outstanding collateral balance has been reduced to $97.9 million from $165.5 million at closing. Of the original 23 loans in the pool, 12 loans remain outstanding. Properties are currently located in California (77% of the pool's unpaid principal balance), Arizona (12%) and Michigan (7%). The pool's collateral consists of retail (70%), hotel (11%) and office (8%) properties. There are currently no delinquent loans and no loans have been specially serviced since closing. Of the 12 loans remaining in the pool, 11 financial statements were received for year-end 1999 (95% by principal balance). The Fitch stressed weighted average debt service coverage ratio The debt service coverage ratio (DSCR), or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment real estate. It is a popular benchmark used in the measurement of an income-producing property’s ability to produce (WADSCR WADSCR Weighted Average Debt Service Coverage Ratio ) for these loans is 1.39 times (x) based on Fitch adjusted net cash flow and the greater of the actual or Fitch annual debt service payment (calculated using a hypothetical mortgage constant), compared to 1.04x for those same 11 loans reported at origination. Fitch will continue to monitor this transaction as surveillance is ongoing. Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
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