American Southwest 94-C2 P-T Ctfs Upgraded By Fitch IBCA.NEW YORK--(BUSINESS WIRE)--Dec. 9, 1999-- American Southwest Financial Securities Corp.'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 1994-C2, is upgraded as follows: -- $6.0 million class B-1 to `AA+' from `AA', -- $17.2 million class B-2 to `A+' from `A', and -- $11.8 million class B-3 to `BB+' from `BB'. Class C is not rated. Class A-1, class A-2, class A-3, and class A-4 have paid off and are no longer rated by Fitch fitch: see polecat. 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 . The rating actions follow Fitch IBCA's review of the transaction, which closed in December 1994. The rating upgrades reflect significant increases in subordination levels due to amortization and loans paying off. Credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing levels for classes B-1 through B-3 have increased significantly since closing. As of the November 1999 distribution date, the pools certificate balance has decreased by 75% to $54.4 million from $215.1 million at closing. The certificates are currently collateralized by four multifamily and commercial mortgage loans, down from 39 at origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real . The largest loan in the pool (70%), matures Jan. 1, 2000 and expected to pay off in full. The properties are located 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 (70%), Michigan (24%), and New Jersey (6%) and consist of multifamily (70%) and retail (30%) properties. Two of the four remaining loans, totaling 24% of the principal balance, are being specially serviced. Both of the specially serviced loans have been extended past maturity. The 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 year-end 1998 is 1.58 times (x) up from 1.48x at year- end 1997. A stress scenario was run whereby three loans, representing 91% of the pool, were assumed to default at various loss severities. The loans assumed to default were either being specially serviced or mature within the next year. Under these stress scenarios, the credit enhancement levels justified the rating actions. Fitch IBCA will continue to monitor this transaction as surveillance is ongoing. |
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