Correction: Fitch Ratings Upgrades ASC Series 1996-D3 Classes A-2, A-3 & A-4.Business Editors NEW YORK--(BUSINESS WIRE)--March 26, 2004 (This is an amended version of a press release issued yesterday, containing revised rating information on the class A-3 certificates, which are being upgraded to 'AA', not 'AA-' as listed earlier.) 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. upgrades Asset Securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. Corp.'s (ASC ASC Ambulatory surgery center, see there ) 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 1996-D3, as follows: -- $39.1 million class A-2 certificates to 'AAA' from 'AA'; -- $35.2 million class A-3 certificates to 'AA' from 'A'; -- $39.1 million class A-4 certificates to 'A-' from 'BBB'. In addition, Fitch affirms the following classes: -- $302.2 million class A-1C 'AAA'; -- $19.6 million class A-1D 'AAA'; -- $43 million class B-1 'BB'; -- $27.4 million class B-2 'CCC'; -- $5.7 million class B-3 'D'. Fitch does not rate class A-5. Classes A-1A and A-1B have paid off in full. The upgrades are due to an increase in 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 since issuance and levels which are in line with the subordination levels of deals issued today having similar characteristics. As of the March 2004 distribution date, the pool's aggregate certificate balance has decreased by 32.7% since issuance, to $527 million from $782.6 million. Of the original 112 loans, 91 are currently outstanding in the pool. Eight loans are currently in special servicing including one 60 days delinquent, one 90 days delinquent, three in foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. and three real estate-owned (REO reo Noun NZ a language [Maori] ) loans. Losses are expected on five of these loans. Six of the specially serviced loans, including two REO loans, are secured by hotel properties. The largest specially serviced loan (2.9%), is secured by a 263-room, ten-story full-service hotel in downtown Atlanta Downtown Atlanta refers to the largest financial district for the city of Atlanta. As defined by the Central Atlanta Progress (CAP) organization, the area measures approximately 4 mi², and was home to 23,300 as of 2006. . This loan is currently delinquent as a result of weak demand and declining economic conditions. The loan transferred to the special servicer recently and pre-negotiations have begun for a possible workout of the loan. The second largest loan in special servicing (0.6%), is secured by a 75-bed nursing home in Westwood CA. This loan originally transferred to the special servicer due to a covenant default and the special servicer is working to modify the loan. Fitch remains concerned with the pool's high hotel (31%) concentration. Also of concern is the loan concentration, with the top five loans representing 34% of the pool. |
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