Fitch Downgrades 1 Class of Morgan Stanley 1997-RR.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 -- 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. has downgraded one class of Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Capital I Inc. commercial mortgage-backed securities
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 1997-RR (MS 97-RR) as follows:
-- $98.2 million class F to 'B+' from 'BB-'. In addition, Fitch has affirmed the following classes: -- $8.9 million class D at 'AAA'; -- $30.2 million class E at 'AAA'. Classes G-1 and G-2 remain at 'C/DR6' and 'CCC/DR4', respectively. Classes A, B, C, and IO have been paid in full and classes H-1 and H-2 have been reduced to zero due to realized losses. The downgrade of class F is the result of the reduced credit quality of the remaining collateral. The current weighted average rating factor (WARF WARF Wisconsin Alumni Research Foundation WARF Wide Aperture Research Facility WARF Wartime Active Replacement Factors WARF weighted-average risk factor WARF Wartime Attrition and Replacement Factors WARF Whylie Animal Rescue Foundation ) of the underlying bonds has worsened to 35.4 corresponding to an average rating of 'B-/CCC+' compared to 28.8 (corresponding to 'B') at last review in August 2006. The underlying classes' ratings are based on Fitch's actual rating, or on Fitch's internal credit assessment for those classes not rated by Fitch. Fitch anticipates losses on the underlying transactions, which will result in losses being passed-through to the bonds held by MS 97-RR. The losses are expected to be absorbed by classes G-1 and G-2. The certificates are collateralized by all or a portion of 21 classes of fixed-rate commercial mortgage-backed securities in 11 separate transactions. As of the May 2007 distribution date, the transaction has paid down 66%, to $171.2 million from $503.7 million at issuance. All underlying transactions are specially serviced by servicers that carry a Fitch rating of 'CSS1'. The collateral is well-seasoned with all transactions issued in 1996 or 1997. Due to adverse selection, however, many of these transactions are experiencing losses to the classes lower in seniority within the transaction. Approximately 26.5% of the collateral represents first loss classes within its respective transaction. Delinquencies as a percent of total collateral in the underlying transactions are greater than those at last review and are as follows: 30 days: 1.1%; 60 days: 1.8%; 90+ days: 0.3%; foreclosure: 0.4%; and real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most (REO reo Noun NZ a language [Maori] ): 1.8%. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Oct. 18, 2006 and also available on Fitch's web site at www.derivativefitch.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.derivativefitch.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto. |
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