First Union-Lehman-Bnk of Amer Asgnd Prelim Rtgs.NEW YORK--(BUSINESS WIRE)--S&P's CreditWire 5/18/98--Standard & Poor's today assigned its preliminary ratings to First Union-Lehman Brothers-Bank of America's $3.475 billion 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 1998-C2 (see list). The preliminary ratings are based on information as of May 13, 1998. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings are as follows: Class A-1 AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. Class A-2 AAA Class B AA Class C A Class D BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. Class E BBB- Class F BB+ The preliminary ratings reflect the credit support to be provided by the subordinate classes of certificates, the liquidity provided by the master servicer, the economics of the underlying mortgage loans, the credit rating of tenants in credit tenant leases, and the transaction's particular structural features. Standard & Poor's analysis of the portfolio determined that on a weighted average basis the pool (excluding credit tenant leases) has 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 ) of 1.34 times (x), a beginning loan-to-value ratio Loan-to-value ratio (LTV) The ratio of money borrowed on a property to the property's fair market value. (LTV LTV See: Loan-to-value ratio ) of 89.5%, and an ending LTV of 64.8%. A copy of Standard & Poor's complete presale report for this transaction is available on Standard & Poor's Ratings Services Home Page at www.standardandpoors.com/ratings. Please select Presale Reports, Structured Finance. Standard & Poor's will conduct a telephone conference call on this transaction on May 18, 1998 at 10:00 a.m. To participate in this call dial: 888-790-1825 about 10 minutes before the scheduled start of the call. European callers should dial: 415-228-4637. It is not necessary to call ahead of time to preregister pre·reg·is·ter v. pre·reg·is·tered, pre·reg·is·ter·ing, pre·reg·is·ters v.intr. To take part in preregistration. v.tr. To enroll (a student) during a period of preregistration. . The password is "S&P". Standard & Poor's Ratings Services may share the information callers give us with the issuer of the securities being discussed on this call, or with financial advisers to the issuer. Under The McGraw-Hill Companies Privacy Policy, you may request that your information not be shared in this way. For more information on our Privacy Policy, please visit our web site at www.mcgrawhill.com/corporate/news_info/privacy.html For more information on this teleconference, please see related news release or check the Standard & Poor's web site at www.standardandpoors.com/ratings/seminars.--CreditWire CONTACT: Charles E. Calhoun, 212/208-1249 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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