Aetna, 1997-ALIC Classes B Through J Upgraded By Fitch.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 6, 2001 Aetna Commercial Mortgage Trust's multiclass 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-ALIC are upgraded by Fitch as follows: $68.2 million class C to `AA+' from `AA-', $48.2 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. +', $20.1 million class E to `A-' from `BBB`, $44.1 million class F to `BB+' from `BB', $8 million class G to `BB' from `BB-`, $14 million class H to `B+' from 'B', and the $26.1 million class J to `B' from `B-`. The $71.3 million class A-1B, $86.1 million class A-2, interest-only class IO, and $64.2 million class B certificates are affirmed at `AAA' by Fitch. The $20.1 million class K and $32.1 million class L certificates were not rated by Fitch. The rating actions follow Fitch's annual review of the transaction, which closed in December 1997. The upgrades reflect increases in subordination levels due to amortization and loan payoffs. As of the October 2001 distribution date, the pool's collateral balance has been reduced by 37%, from $802.7 million at closing to $502.5 million. No loans are currently delinquent. Fifteen loans have paid off since closing; none have realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. . Midland Loan Services, L.P. (Midland), the master servicer, collected 90% (by balance) of the year-end (YE) 2000 property financial statements. The YE-2000 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 for those loans with financials was 1.63 times (x) compared to 1.39x (for the same loans) at closing. Two loans (8.1%) are currently being specially serviced. The largest specially serviced loan (6.9%) is secured by an office property in Hackensack, NJ. The property's largest tenant, who occupied 49% of the net rentable area (NRA NRA (National Rifle Association of America) organization that encourages sharpshooting and use of firearms for hunting. [Am. Pop. Culture: NCE, 1895] See : Hunting ), vacated earlier this year, as their lease expired. The loan terms were modified after the borrower had informed the servicer of an imminent default due to occupancy issues. The borrower had to deposit additional funds into an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. account to lease the property and as additional collateral. Current occupancy is 55%. The second specially serviced loan (1.3%) is secured by a retail property in Chesapeake, VA. The loan matured in 2000; however the borrower was unable to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. the loan due to occupancy issues. Farm Fresh, a supermarket occupying 49% of the NRA, vacated in 1998, but continues to make lease payments. The property is currently 85% leased and 35% occupied. The maturity date of this loan was extended. As of the October distribution date, two loans were on Midland's watchlist due to the upcoming maturity in January 2002. The borrowers have notified the servicer that they would be unable to refinance the loans at maturity. One of these loans (4.4%) has been transferred to special servicing since and the other one (2.3%) is pending transfer to special servicing. Fitch is concerned with the increase in retail exposure. The certificates are currently securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. by 25 mortgage loans, consisting primarily of office (52%), retail (23%), industrial (11%), and hotel (9%) properties, with significant concentrations in California (24%), 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 (20%), and New Jersey (15%). The largest loan in the pool (17%) is secured by a super-regional center in Poughkeepsie, NY. The property is 99% leased and 89% occupied as Montgomery Ward, which is not part of the collateral, vacated after filing for bankruptcy; they continue to make lease payments. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the trustee, this transaction did not contain any document defects. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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