Correction: Fitch Ratings Upgrades RMF Series 1995-1 Classes B & C.Business Editors NEW YORK--(BUSINESS WIRE)--April 28, 2004 (This is an amended version of a press release issued earlier today, containing revised information on class D, which is affirmed at 'BBB', not upgraded.) 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 RMF'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 1995-1, as follows: -- $3.5 million class B to 'AAA' from 'AA+'; -- $8.8 million class C to 'AA' from 'A+'. The following classes are affirmed by Fitch: -- Interest-only classes I-2 and I-3 'AAA'; -- $7.3 million class D 'BBB'; -- $10.2 million class E 'B'; -- $7.3 million class F 'C'. Fitch does not rate the class G or H certificates. The upgrades reflect increased 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 due to loan payoffs and amortization. As of the April 2004 distribution report, the transaction's certificate balance declined by approximately 72% to $40.2 million from $146.1 million at issuance. Fitch remains concerned with the concentrations within the pool, a high percentage of specially serviced loans and the increasing interest shortfalls. Only fourteen loans remain in the pool; all are secured by health care facilities. Seven loans (45%) are currently in special servicing, including the EHA EHA European Hematology Association EHA Economic History Association EHA Emmanuel Hospital Association EHA Education for All Handicapped Children Act of 1975 EHA Empty Homes Agency EHA English Hockey Association EHA Electrohydrostatic Actuator pool (24%), which is currently real estate-owned (REO reo Noun NZ a language [Maori] ). Interest shortfalls are affecting classes E, F, G and H and it is unclear whether interest shortfalls are recoverable. The EHA pool, originally consisting of six cross-collateralized and cross-defaulted loans, has been in special servicing since 2000, when the borrower/operator, Mariner Post Acute, filed for Chapter 11 bankruptcy protection. A reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. was agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy in March 2002. One loan was assumed by a new entity and is performing. One of the five REO properties was liquidated at a $2.8 million loss, one is currently under contract and the remaining three are being marketed for sale. Significant losses are expected. The Indigo Manor loan (15%) has been in special servicing since February 2000. The special servicer is currently evaluating a discounted payoff proposal. |
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