Fitch Downgrades 2, Upgrades 1 and Places 5 Classes on RWE of GMAC 1998-C1.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. downgrades and assigns distressed recovery (DR) ratings to GMAC's Commercial Mortgage Securities, Inc.'s commercial mortgage 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 1998-C1 as follows: --$14.4 million class L to 'CCC/DR2' from 'CCC', --$10.8 million class M to 'C/DR6' from 'CCC. In addition, Fitch upgrades the following class: --$68.3 million class E to 'AAA' from 'AA'. Fitch places the following classes on Rating Watch Evolving (RWE RWE Rot-Weiss Essen (Germann football club) RWE Ralph Waldo Emerson RWE Rheinisch-Westfälische Elektrizitätswerke (German Power Supplier) RWE Read Write Execute RWE Right Wing Extremist ): --$43.1 million class F 'A-'; --$32.4 million class G 'BBB'; --$25.2 million class H 'BB+'; --$14.4 million class J 'BB-'; --$25.2 million class K 'B-'. In addition, Fitch affirms the following; --$424.1 million class A-2 at 'AAA'; -- Interest only class X at 'AAA'; --$28.8 million class B at 'AAA'; --$64.7 million class C at 'AAA'; --$75.5 million class D at 'AAA'. Fitch does not rate the $8.1 million class N certificates. The rating 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. and assignment of distressed recovery ratings to classes L and M are the result of possible losses from the Senior Living Properties loan (SLP (Service Location Protocol) An IETF standard used to announce and discover services such as printers and file shares on an IP network. Apple used SLP prior to Mac OS 10.2, but migrated to its Bonjour technology. SLP is also used in SIP-based IP telephony applications. ). Classes F through K have also been placed on Rating Watch Evolving due on ongoing concerns with SLP. These classes may be downgraded if SLP is unable to sell the remaining assets prior to the maturity of the loan in February 2008; conversely upgrades are likely if a sale is completed prior to maturity. The upgrade of class E is the result of additional paydown and defeasance since Fitch's last rating action. As of the March 2007 distribution date, the pool's aggregate certificate balance has decreased 42.5% to $826.8 million from $1.438 billion at issuance. Of the original 181 loans, 103 remain outstanding in the pool, including 15 defeased loans (22%). The largest loan (22%) in the transaction, Senior Living Properties (SLP) is current and remains in special servicing. The borrowers filed for bankruptcy protection in May 2002. The loan was modified during bankruptcy to allow for the sale or refinance of the properties with the sale proceeds applied to the paydown the loan. The borrower recently replaced the management team in hopes of improving performance of the Texas assets in order to maximize value. The loan is backed by a surety bond surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. , which has been guaranteed by Centre Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. (Centre). The surety bond will continue to make debt service payments until the loan's maturity in February 2008. Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.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.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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion