COMM 2000-C1 P-T Certificates Downgraded By Fitch Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 17, 2003 COMM 2000-C1 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 2000-C1 are downgraded by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. as follows: $26.9 million class G to 'BB' from 'BB+'; $6.7 million class H to 'BB-' from 'BB'; $6.7 million class J to 'B+' from 'BB-'; $10.1 million class K to 'B' from 'B+'; $7.9 million class L to 'B-' from 'B'; $6.7 million class M to 'CCC' from 'B-'. In addition, Fitch affirms the following classes: $128.3 million class A-1, $542.9 million class A-2, and interest-only class X at 'AAA'; $38.2 million class B at 'AA'; $39.3 million class C at 'A'; $13.5 million class D at 'A-'; $25.8 million class E at 'BBB'; $11.2 million class F at 'BBB-'; and $4.5 million class N at 'CCC'. Fitch does not rate the $9 million class O certificates. The downgrades are attributed to additional information received from the master servicer, Orix Capital Markets (Orix). At the time of Fitch's October review, Orix reported a 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 DSCR See: Debt-service coverage ratio ) on the Crowne Plaza Hotel (10% of the outstanding balance) for the trailing twelve months In commerce, the trailing twelve months (TTM) is a moving measurement (for example, an average or a sum) over the 12 previous months, using the most recent data available. Also sometimes known as last twelve months (LTM). (TTM TTM Trailing 12 months. Often used with Earnings Per Share. ) as of June 2002 of 1.89 times (x). This servicer provided DSCR corresponds to a Fitch stressed DSCR of 1.49x which resulted in an affirmation of the transaction. The servicer recently provided revised operating statement operating statement See income statement. analysis reports (OSAR) for all periods starting September 2001. The revised TTM DSCR as of September 2002 of 1.02x corresponds to a Fitch stressed debt service coverage ratio of 0.76x compared to 1.13x at year-end (YE) 2001 and 1.73x at issuance. The Fitch DSCR for the loan is calculated using Fitch adjusted net cash flow and debt service payments based on the current balance and Fitch stressed refinance constant. The hotel's revenue per available room (RevPar) as of September 2002 was $144 compared to $175 at issuance. Additionally, Fitch remains concerned with the three loans representing 4.8% of the overall pool balance that are currently in special servicing. The Radisson Hotel in Miami, FL did not payoff as expected, but was brought current and the special servicer, GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage, expects it to be returned to the master servicer within six months. Fitch applied various hypothetical stress scenarios taking into consideration the Crowne Plaza loan, the specially serviced loans and the other loans with DSCRs below 1.00x. Based on the results of these scenarios, downgrades were warranted. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion