Fitch Downgrades 2 Classes of NationsLink Funding Corp., Series 1998-1.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 NationsLink Funding Corp.'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 1998-1, as follows: --$10.2 million class G to 'B+' from' 'BB+'; --$25.5 million class H to 'CC/DR4' from 'B'. In addition, Fitch also affirms the following classes: --$111.2 million class A-3 at 'AAA'; --Interest-only class X-1 at 'AAA'; --Interest-only class X-2 at 'AAA'; --$53.6 million class B at 'AAA'; --$56.1 million class C at 'AAA'; --$48.5 million class D at 'AAA'; --$51 million class F at 'BBB'. The $5.3 million class J remains 'C' and the distressed recovery rating has been downgraded to 'DR6' from 'DR5'. Fitch does not rate class E. Class K has been reduced to zero due to losses. Classes A-1 and A-2 has been paid in full. The downgrade is a result of the expected losses associated with the largest specially serviced asset in the transaction. The losses are expected to deplete de·plete v. 1. To use up something, such as a nutrient. 2. To empty something out, as the body of electrolytes. class J and severely impact class H. As of the August 2006 distribution date, the pool's aggregate certificate balance has been reduced 62.1% to $387 million from $1.02 billion at issuance. To date, the trust has realized $31.2 million in losses. Three loans (8.4%) are currently in special servicing. The largest specially serviced asset (7.1%) is a hotel located in Kissimmee, FL and is currently 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] ). The hotel has lost its flag and a recent valuation of the property indicates significant losses upon liquidation of the asset. The second largest specially serviced loan (0.7%) is a retail property located in Greencastle, IN. The loan transferred to the special servicer due to delinquent payments as a result of cash flow issues. Funds have been pulled from the debt service reserve account to bring the loan current. The special servicer is pursuing a deed-in-lieu of foreclosure. A minimal loss is expected. The third specially serviced loan (0.6%) is a healthcare property located in Brooklyn, NY. The property had been taken over by the department of social services social services Noun, pl welfare services provided by local authorities or a state agency for people with particular social needs social services npl → servicios mpl sociales due to regulatory violations. The borrower has regained control of the facility and the loan is current. In addition, one loan (0.9%) had reported moderate damage by Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. . The loan is secured by a multifamily property located in Metaire, LA. The borrower has submitted an insurance claim of $1 million. Repairs are still underway. Rent at the property has decreased due to damage and vacancy. Fitch will continue to monitor the performance of this loan. 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. |
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