CL Asset Securities LLC, Series 1997-1 Upgraded by Fitch IBCA.NEW YORK--(BUSINESS WIRE)--Sept. 14, 1999-- CL Asset Securities LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control 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 1997-1, are upgraded as follows: --$30.1 million class B to `AAA' from `AA+', --$40.3 million class C to `AA' from `A+', --$30.8 million class D to `A' from `BBB', --$52.2 million class E to `BBB- `from `BB', --$23.7 million class F to `BB-` from `B', and --$9.5 million class G to `B' from `B-`. The rating on Class A is withdrawn because the certificates have been paid in full. The $23.7 million class H certificates and interest only class IO certificates are not rated by 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 . The rating action follows Fitch IBCA's review of the transaction, which closed in April 1997. The upgrades reflect significant increases in subordination levels due to amortization and loan payoffs. As of the Aug. 1999 distribution date, the pool's collateral has been reduced by 56%, from $474.4 million at closing to $210.4 million. Of the original 23 loans in the pool, 9 loans remain outstanding. Since closing, there have been no delinquencies, advances, or 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. . No loans are with the special servicer. Based on the most recent information available from the servicer, 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 (based on Fitch IBCA's stressed constant) has increased to 2.02 times (x) from 1.76x at closing. Two loans (representing 12% of the pool) are secured by properties leased to a single tenant that intends to vacate To annul, set aside, or render void; to surrender possession or occupancy. The term vacate has two common usages in the law. With respect to real property, to vacate the premises means to give up possession of the property and leave the area totally devoid of contents. prior to its lease termination dates termination date, n See expiration date. . However, the tenant will continue to make lease payments until the end of its lease terms. Fitch IBCA took this into consideration when running various stress scenarios. The significant number of payoffs more than offsets potential risk from these two loans and subordination levels were sufficient to justify the upgrades. Fitch IBCA will continue to monitor the transaction, as surveillance is ongoing. |
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