Fitch Affirms Nomura Hotel First Mortgage Trust 1993-A.Business Editors CHICAGO--(BUSINESS WIRE)--Aug. 20, 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. affirms Nomura Hotel First Mortgage Trust, series 1993-A, $51.2 million single class, 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 at 'AA+'. The affirmation relies heavily on the structural features of the transaction, which include a 22-year amortization schedule, additional principal payments to begin in November 2003, and a $10.5 million guaranty. Fitch's stressed 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 ), based on audited fiscal year-ended 2002 statements, calculated using a 11.33% refinance constant (the current loan balance), and adjusted for capital expenditures and reserves, was 2.51 times (x), compared to 2.60x at fiscal year-end 2001. While the overall performance of the properties has declined significantly over the past few years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time 22-year amortization schedule has kept the transaction above issuance levels. Additionally, beginning with the November 2003 payment, additional principal of up to $1.485 million per quarter is expected to be paid on the loan. The certificates are secured by a pool of nine fixed-rate mortgage loans on Embassy Suites hotels Embassy Suites Hotels is a chain of hotels, which specializes in suite-style rooms that is owned by Hilton Hotels Corporation. Embassy Suites is an upscale chain of all-suite hotels. All guest rooms of this chain feature a separate living area as well as a sleeping area. located throughout the United States. The hotels are located in Colorado (2), Texas (2), Washington (2), Michigan, Ohio, and Oregon. All hotels have been inspected within the last two years without any significant signs of deferred maintenance noted. The Borrower continues to renovate and update the properties to remain competitive in their respective markets. Fitch will continue to monitor this transaction closely. |
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