AMRESCO, Series 1997-C1 Affirmed by Fitch.Business Editors NEW YORK--(BUSINESS WIRE)--July 21, 2000 AMRESCO Commercial Mortgage Funding I Corp.'s 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 1997-C1, $114.3 million class A-1, $40.0 million class A-2, $141.6 million class A-3 and interest-only class X are affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. at 'AAA' by Fitch. In addition, the $24.0 million class B is affirmed at 'AA+', the $12.0 million class C at 'AA', the $21.6 million class D at 'A', the $26.4 million class E at 'BBB', the $9.6 million class F at 'BBB-', the $31.2 million class G at 'BB', the $4.8 million class H at 'BB-', the $7.2 million class J at 'B' and the $2.4 million class K at 'B-'. Fitch did not rate the $12.0 million class L certificates. The affirmations follow Fitch's annual review of the transaction, which closed in June 1997. The certificates are collateralized by 96 fixed-rate multifamily and commercial mortgage loans, securing properties located in 28 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . As of the July 2000 distribution date, the pool's aggregate principal balance declined by 6.9% from $480.1 million at closing to $447.0 million. One loan has paid off since closing. Currently two loans (5.4% of the pool's outstanding principal balance) are 90+ days delinquent and one of these loans (0.5%) had the 1999 DSCR DSCR See: Debt-service coverage ratio below 1.00 times (x). A total of three loans (6.4%) are specially serviced by Lend Lease Asset Management, L.P. As of July 2000, CapMark Services, L.P., the master servicer, collected year-end 1999 property financial statements for 84 loans (91% of the pool's outstanding principal balance). The 1999 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 (DSCR) for those loans with financials was 1.55x compared to 1.44x at closing (for the same loans). One loan (4%) is secured by a power center, previously anchored by Builder's Square (33% of net rentable area). Builder's Square was operated by Hechinger Co. (Hechinger), a home improvement retailer. After filing Chapter 11 in June 1999 Hechinger announced that it had decided to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the rather than reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. . Builder's Square vacated in September 1999; however, Kmart guarantees their lease and the loan remains current. One specially serviced, delinquent loan (4.9%) is secured by a retail property, previously anchored by Home Quarters (38% of net rentable area), also operated by Hechinger. Home Quarters vacated in January 2000 and stopped making the lease payments. Their lease was not guaranteed by Kmart. A stress scenario was applied whereby specially serviced loans and loans identified as potential problems were assumed to default. Under this stress scenario subordination levels remain sufficient to justify the rating actions. Fitch will continue to monitor the 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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