Fitch Downgr Certain FMAC & Captec Franchise Transactions.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 30, 2001 Fitch has downgraded three FMAC FMAC Find, Meet, Attract, Close FMAC Financial and Management Accounting Committee FMAC Fédération Mondiale des Anciens Combattants (French: World Veterans Federation) FMAC FEMA Map Assistance Center FMAC FPGA Mission Assurance Center Loan Receivables franchise loan transactions and one Captec franchise loan transaction. The FMAC transactions remain on Rating Watch Negative, while the Captec transaction is being placed on Rating Watch Negative. Fitch downgrades Captec Grantor Trust Grantor trust A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee under a custodial or trust agreement. 2000-1 class C to `A- ` from `A', class D to `BB' from `BBB', class E to `B' from `BB' and class F to `CCC' from `B'. In addition, all classes are being placed on Rating Watch Negative. The rating actions are a result of $4.5 million of collateral write-downs over the last two months, which has eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. 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 to just under the original levels. Currently, approximately 10% of the pool is in default status and Fitch expects additional losses on collateral as loan work-outs are completed. Fitch downgrades FMAC Loan Receivables Trust 1997-A class E to `B+' from `BB' and class F to `CCC' from `B'. Classes D, E and F will remain on Rating Watch Negative. The rating actions are a result of collateral write-downs in the trust as defaulted loans have completed workouts. The pool currently has five loans either delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. greater then 60 days or defaulted with an unpaid principal balance of approximately $7.5 million. The current credit enhancement remains above original levels for all classes except classes E and F. Fitch downgrades FMAC Loan Receivables Trust 1997-C class B to `BBB-` from `A', class C to `B-` from `BB+' and class D to `D' from `CCC'. All classes will remain on Rating Watch Negative. The downgrades are a result of recent write-downs in the pool, due largely to the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of a large borrower. The collateral remaining in the pool appears to be pretty clean as only $700,000 remains in default and there hasn't been a loan delinquent more then 30 days in seven months. Fitch downgrades FMAC Loan Receivables Trust 1998-A class C to `B' from `BB' and class D to `D' from `CC' with all classes remaining on Rating Watch Negative. The rating action is due to recent write-downs in the pool. The pool currently has $30 million in default with over half of that being represented by one borrower. This borrower is a convenience and gas operator who has filed bankruptcy. The collateral on the loan is mostly leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. mortgage and enterprise value, which can significantly limit recoveries. |
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