CSFB 1997-SPICE $31.7M Class B Upgraded by Fitch IBCA.NEW YORK--(BUSINESS WIRE)--Dec. 8, 1999-- Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. Mortgage 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 1997-SPICE, $31.7 million class B is upgraded to `AA+' from `AA' 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 . In addition, the $28.2 million class C is upgraded to `A+' from `A'. The $69.0 million class A and interest-only class AX certificates 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'. Also, the $24.7 million class D is affirmed at `BBB', the $8.8 million class E at `BBB-', the $18.4 million class F at `BB', the $13.4 million class G at `B', and the $10.6 million class H at `B-'. Fitch IBCA does not rate the $24.7 million class I and interest-only class J certificates. The rating actions follow Fitch IBCA's annual review of the transaction, which closed in December of 1997. The certificates are collateralized by 59 mortgage loans consisting of multifamily (40.3%), retail (23.3%), and office (22.3%) properties. The properties are located in 16 different states and Washington, D.C., with significant concentrations in California (25.9%), New Jersey (15.2%), and Illinois (12.9%). As of the October 1999 distribution date, the pool's aggregate collateral balance has been reduced by approximately 34.9%, to $229.4 million from $352.3 million at closing. A total of 30 loans have paid off since origination, with 14 being paid since last year's annual review. Total losses have amounted to $1.45 million with a weighted average loss of 27.1%. Currently, there are four specially serviced loans (13.3% of the pool) and two delinquent loans (2.1% of the pool), of which one is being specially serviced. Midland Loan Services, Inc., the master servicer, collected year-end 1998 financial statements for 42 loans, or 70.6% of the pool balance. 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 information provided, the year- end 1998 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 DSCR See: Debt-service coverage ratio ) is 1.58 times (x), which has increased from 1.40x at year-end 1997 and 1.37x at closing. Five loans (4.2% of the pool) have a 1998 DSCR below 1.00x. In addition, two loans (1.7% of the pool) have shown a decline in 1998 net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of greater than 25%, with one loan having a DSCR below 1.00x. As part of Fitch IBCA's analysis, the loans identified as potential problems were assumed to default at various stress scenarios. The resulting subordination levels were sufficient to upgrade classes B and C and affirm the remaining classes. Fitch IBCA will continue to monitor this transaction, as surveillance is ongoing. |
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