Fitch Affirms NationsLink Funding Corp., Series 1999-LTL-1.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 13, 2000 NationsLink Funding Corporation's, commercial loan 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 1999-LTL-1, $56.3 million class A-1, $193.9 million class A-2, $127.3 million class A-3 and interest-only class X are affirmed at `AAA' by Fitch. Additionally, the $25.9 million class B is affirmed at `AA' and the $20.9 million class C is affirmed at `A'. Fitch does not rate classes D, E, F or G. The ratings affirmations follow Fitch's annual review of the transaction which closed in March 1999. The certificates are collateralized by 127 fixed-rate mortgage loans and one participation interest in a mortgage loan, secured by 128 commercial properties. The pool consists mainly of credit tenant lease A credit tenant lease is a method of financing real estate. The landlord borrows money to finance the property and pledges as security the rents to be received from the tenant. (CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic ) loans, contributing 78%. In addition to the CTL loans, 17 loans or 13% are traditional conduit loans and one loan representing 8.8%, can be classified as a large loan. The properties are located in 28 states with large geographic concentrations in Massachusetts (12%), Texas (12%), New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (11%) and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. (10%). As of the November 2000 distribution date, the pool's aggregate certificate balance had decreased by 3.8%, to $473.5 million. No loans are delinquent or in special servicing. Broadway at the Beach, the largest loan in the pool, is a 342,705 square foot (sf) open-air entertainment center located in Myrtle Beach, SC. As of June 2000, the property was 100% occupied compared to 94% occupied at issuance. The year-end 1999 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 ) was 1.88 times (x) compared to 1.86x at issuance. DSCR is calculated using the net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the property. For the 17 conduit loans in the pool, Midland Loan Services, LP., as master servicer, collected 1999 year-end financials for 14 loans (86% by balance). Of those loans that reported financials, the DSCR has changed from 1.42x at issuance to 1.62x as of year-end 1999. The CTL portion of the pool is comprised of 109 loans and one participation in a loan secured by leases on 110 properties. The leases are guaranteed by 35 different credit tenants. In 2000, there has been an overall decline in the ratings of the underlying tenants. The main concern has been the continued deterioration of Rite Aid's credit rating. Rite Aid represents approximately 7.5% of the pool. As part of Fitch's analysis, the ratings of all credit tenants in the pool were reviewed. At this time the overall decline is not enough to affect the ratings on the certificates. Because the ratings of CTL transactions are highly sensitive to the corporate ratings of the underlying tenants, Fitch will continue to monitor this transaction for any potential further deterioration. |
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