Fitch Affirms Nomura Hotel Mortgage Trust, Series 1993-1.Business Editors NEW YORK--(BUSINESS WIRE)--June 29, 2000 The Nomura Hotel Mortgage Trust's commercial mortgage pass-through certificates, series 1993- 1, $19.7 million class A rated 'AA' and $4.9 million class B rated 'BBB' are affirmed by Fitch. In addition, interest only class A-1 rated 'AA' and B-1 rated 'BBB' are also affirmed. Fitch does not rate the $16.5 million class C or the $4.4 million class D. The rating affirmations come following the annual review of this transaction, which closed Oct. 15, 1993. The certificates are secured by one mortgage note, which is then secured by nine cross-collateralized and cross- defaulted first-lien mortgages on nine hotels. There is a significant geographic concentration located in Tennessee (56%) with additional hotels located in Florida (11%), Georgia (11%), Mississippi (11%), and North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. (11%). As of the June 2000 distribution date, the pool's certificate balance has been reduced by approximately 13%, to $44.8 million from $51.5 at closing. GMACC GMACC Governor's Military Affairs Coordinating Committee Commercial Mortgage Corporation collected yearend 1999 financial statements for all of the underlying properties. According to the information provided, the 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 ) for class A is 2.69 times (x), compared to the underwritten DSCR of 2.37x. The 1999 DSCR for class B is 2.15x, compared to the underwritten DSCR of 1.98x. The overall pool has seen a decline in 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. (NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ) over the past three years due to increased competition in the hotel industry; however, NOI is still performing near underwriting expectations. Fitch will continue to monitor this transaction, as surveillance is ongoing. Fitch is an international rating agency that provides ratings global capital market investors with the highest quality ratings ad research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries in and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
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