Fitch Affirms Commercial Capital Access One Series 2 Bonds.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 31, 2002 Commercial Capital Access One, Inc.'s, series 2, $195.6 million class A and $301,955 class I commercial mortgage bonds are affirmed at '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. . In addition, Fitch affirms the $20.5 million class B bonds at 'AA', $33.1 million class C at 'A' and $23.7 million class D at 'BBB'. Fitch does not rate the $22.2 million surplus balance, which is subordinate to the rated bonds. The rating affirmations follow Fitch's review of the transaction, which closed in October 1997. The bonds are collateralized by 92 loans, which are secured by 92 properties. Approximately 81% of the collateral balance is secured by Low Income Housing Tax Credit (LIHTC LIHTC Low-Income Housing Tax Credit (program) ) multifamily properties, the remaining 19% is secured by a mix of hotel, industrial, and retail properties. As of December 2002, the transaction's aggregate collateral balance had been reduced by 7%, to $295.3 million from $315.8 million at closing. Additionally, the $14 million limited guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. provided by Sun America, Inc. remains intact. Year-end (YE) 2001 operating performance was available for 99% of the collateral. Based on these figures, the comparable weighted-average (WA) 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 ) declined to 1.21 times (x), compared to 1.25x for YE 2000 and 1.22x at closing. There were 18 loans, or 26% of the collateral balance, with a DSCR below 1.0x. One loan, accounting for 1% of the deal, was 30-days delinquent and in special servicing. The affirmation reflects the 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 available to the rated classes and the Sun America, Inc. guaranty. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion