Fitch Downgrades 1 Class of Morgan Stanley 1998-XL1; Assigns Outlooks.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 downgrades and removes from Rating Watch Negative the following class of Morgan Stanley Capital I Inc.'s commercial mortgage pass-through certificates, series 1998-XL1: --$27.8 million class H to 'CCC/RR3' from 'BB-'. Fitch also affirms the following classes and assigns Rating Outlooks: --$40.3 million class D at 'AAA'; Outlook Stable; --$46.3 million class E at 'AAA'; Outlook Stable; --$11.7 million class F at 'AAA'; Outlook Stable; --$30 million class G at 'AA'; Outlook Negative; and --$40.3 interest-only class X at 'AAA'; Outlook Stable. The $13.9 million class J remains at 'C/DR5' Classes A-1, A-2, A-3, B and C have paid in full. The downgrade is the result of an increase in Fitch expected losses from the Charlestowne Mall (25.8%) asset. The Rating Outlooks reflect the likely direction of any rating changes over the next one to two years. The transaction balance has been reduced 81.7% to $169.9 million from $925.8 million at issuance. The Charlestowne Mall transferred to special servicing when it failed to secure new financing at its anticipated maturity date in April 2005. The Charlestown Mall is located in St. Charles, IL and is 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'). The property is being marketed at this time and has an interested purchaser. However, financing has been difficult due to current economic conditions. The mall is currently 74.5% occupied and anchored by Carson Pirie Scott Carson Pirie Scott & Co., known informally as Carson's, is a chain of traditional department stores that have been in business for over 150 years. Their product price points are targeted to the moderate-to-upscale shopper. , Kohl's and Sears. Fitch anticipates that the net proceeds from the sale of the property will result in losses to the trust. The Center America (74.2%) loan is collateralized by a pool of 42 retail assets located in Houston and Dallas, Texas and remains current. The portfolio was acquired by an entity related to the Centro Properties Group. The loan had an Anticipated Repayment Date ('ARD') of June 1, 2008 and did not pay off. Additional interest is accruing and will be deferred until the loan refinances or pays in full. The final maturity date for the Center America loan is June 1, 2028. While the weighted average (WA) occupancy in the pool has declined slightly to 84.2% from 91.7% at issuance, the 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 ) at Sept. 30, 2008 has risen to 2.57 times (x) compared to 1.37x at issuance, largely due to an increase in rents. Since issuance, NCF See National Cristina Foundation. has increased 54.6%. 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.fitchratings.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. |
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