Fitch Downgrades Three Classes Of Merrill Lynch Ser 1998-C1-CTL.Business Editors NEW YORK--(BUSINESS WIRE)--July 26, 2000 Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. Mortgage Investors 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-CTL, $58.1 million class F is downgraded to 'CCC' from 'B+', $3.2 million class G to 'CCC' from 'B' and $4.8 million class H to 'CCC' from 'B-'. In addition, the $1.6 million class J is affirmed at 'CCC'. Classes A-1, A-2, A-3, A-PO A-PO Physical Optics Currents on an Auxiliary Plane , A-IO, B, C, D, E and K are not rated by Fitch. The rating downgrades and affirmation follow Fitch's annual review of this transaction, which closed in Dec. 1995. The certificates are currently collateralized by 111 credit tenant lease A credit tenant lease is a method of financing real estate. The landlord borrows money to finance the property and pledges as security the rents to be received from the tenant. mortgage loans. The ratings of Credit Tenant Lease transactions are highly sensitive to the movements of the corporate credit ratings of the underlying tenants. The downgrade is primarily a result of the decline of two corporate credits, Rite Aid and Heilig Meyers. This transaction has a significant concentration of loans secured by the Rite Aid Corporation (20.9%). On July 11, 2000 Rite Aid announced a restatement of its earnings. As a result of the recent restatement, Fitch has lowered its internal assessment of the credit quality of Rite Aid. Also, 20 loans (5.1% of the transaction) are secured by Heilig Meyers, Inc. On May 30, 2000, Fitch downgraded the senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. rating of Heilig Meyers from 'BB' to 'B'. In conjunction with this downgrade, classes F, G, H and J have been removed from Rating Watch Negative. Fitch will continue to monitor the performance of this transaction. Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in 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 and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
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