Fitch Affirms & Removes 5 Classes Of ASC 1997-D5 from Rating Watch Negative.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 8, 2003 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. removes five classes of 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 1997-D5 from Rating Watch Negative and affirms them as follows: -- $9 million class A-1A 'AAA'; -- $172.6 million class A-1B 'AAA'; -- $713.0 million class A-1C 'AAA'; -- $229.8 million class A-1D 'AAA'; -- $52.6 million class A-1E 'AAA'. The rating action reflects the decision by GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage Corp. (GMAC), the master servicer, to recoup $6.4 million in non-recoverable expenses over the next several months. GMAC has revised their original decision to recover these expenses during one month (September 2003) to prevent the interest shortfalls to the 'AAA' rated classes. If GMAC decides to recover these expenses in a shorter period of time than currently expected, causing interest shortfalls to classes A-1A through A-1E, these classes can be placed on Rating Watch Negative again. Today's rating action follows a Sept. 2 release in which Fitch placed the aforementioned classes on Rating Watch Negative, in addition to lowering the ratings on six additional classes of ASC, series 1997-D5 (the release is available on the Fitch Ratings web site at 'www.fitchratings.com'). GMAC is recovering $6.4 million in outstanding advances as a result of the revised valuation of the Hyde Park hospital (2.8%) prepared by ORIX Capital Markets, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . According to GMAC, it might take them up to five months to recover these advances. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the interest shortfalls will continue to affect classes A2 through B6. Classes A2 through A-7 will remain on Rating Watch Negative until the interest shortfalls are recouped. Classes A-2, A-3, and A-4 are currently not expected to recoup the shortfalls until April 2004, October 2004, and May 2005, respectively. As long as the Hyde Park loan remains in the trust, class A-5 is expected to experience shortfalls until 2008, and the interest shortfalls on classes A-6 through B-6 are not expected to be recovered unless the trust is successful in recovering funds as a result of the representations and warranties claim on the Hyde Park loan. Fitch will continue to monitor this transaction for developments on the Hyde Park repurchase claim, the loans in special servicing and any other potential issues. |
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