Fitch Downgr Kmart Funding Corporation's Secured Lease Bonds.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 7, 2002 Kmart Funding Corporation's secured lease bonds $96.6 million series F and $20.9 million series G are downgraded to `B+' from `BB+' by Fitch. Series A, B, C, D and E have previously been paid in full. The rating downgrades follow Fitch's review and downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. of Kmart's corporate credit on Jan. 7, 2002. The transaction closed August 1994. The certificates are currently collateralized by an assignment of rents on 24 properties guaranteed by absolute net leases to Kmart Corporation (Kmart), in which Kmart is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to pay rental payments with no setoff setoff (offset) n. a claim by a defendant in a lawsuit that the plaintiff (party filing the original suit) owes the defendant money which should be subtracted from the amount of damages claimed by plaintiff. , abatement A reduction, a decrease, or a diminution. The suspension or cessation, in whole or in part, of a continuing charge, such as rent. With respect to estates, an abatement is a proportional diminution or reduction of the monetary legacies, a disposition of property by will, when or reduction. The properties originally consisted of 19 Kmart stores, 4 Builders Square Builders Square was founded as a big-box home improvement retailer headquartered in San Antonio, Texas. A subsidiary of Kmart, its format was quite similar to Home Depot and Lowe's with floor space of about 100,000 square feet. stores and one apparel warehouse location. Although one of the Kmart properties is vacant and the Builders Square locations are vacant, the ratings of this transaction depend entirely on the rating of Kmart's senior debt obligations. Fitch downgraded its ratings of Kmart at to `B+' from `BB+' and revised the Rating Outlook to Negative from Stable (see press release dated Jan. 7, 2002). Fitch will continue to monitor the performance of this transaction and the ratings of the corporate credit, as surveillance is on-going. |
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