Crest Clarendon Street 2002-1, Ltd. Rated 'AAA/A-/BBB/BB' By Fitch.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 19, 2002 Crest Clarendon Street 2002-1, Ltd.'s and Crest Clarendon Street 2002-1 Corp.'s (collectively the co-issuers) $228 million class A senior secured floating-rate term notes are rated 'AAA' 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. . Fitch also rates $29 million class B-1 second priority fixed-rate term notes 'A-', $10 million class B-2 second priority floating-rate term notes 'A-', $15 million class C third priority fixed-rate term notes 'BBB' and $10 million class D fourth priority fixed-rate term notes 'BB'. Fitch does not rate the $8 million preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . The rating on the class A notes addresses the timely payment of interest and ultimate repayment of principal. The ratings on the class B-1 notes, the class B-2 notes, the class C notes, and the class D notes address the ultimate payment of interest and ultimate repayment of principal. The ratings are based upon the capital structure of the transaction, the quality of the collateral, the overcollateralization and interest coverage tests provided for within the indenture, and the experience and capabilities of MFS Investment Management MFS Investment Management, formerly Massachusetts Financial Services, is a Boston, Massachusetts-based financial services firm. In its publicity, MFS claims to have invented the mutual fund. The current chair of the company is Robert Pozen. as the collateral administrator and Allied Capital Corporation as the disposition consultant. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from issuance are used to purchase a $300 million pool of real estate investment trust debt securities (REITs) and commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. (CMBS CMBS See: Commercial Mortgage Backed Securities ). The collateral has a Fitch weighted average rating slightly better than 'BBB-' (WARF WARF Wisconsin Alumni Research Foundation WARF Wide Aperture Research Facility WARF Wartime Active Replacement Factors WARF weighted-average risk factor WARF Wartime Attrition and Replacement Factors WARF Whylie Animal Rescue Foundation of 19.7). The stated final maturity of the class A notes is December 2017, and the stated final maturities of the class B-1, B-2, C, and D notes are December 2035. This is a static portfolio with no reinvestment period. Quarterly payments start Dec. 28, 2002. For a detailed description of Fitch's rating analysis, please see the report titled 'Crest Clarendon Street 2002-1', dated Aug. 29, 2002 and available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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