Fitch Places 7 Classes of ASC 1997-D5 on Rating Watch Positive Due to Dr.'s Hospital Settlement.CHICAGO -- 17 August 2006: Asset Securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. Corp.'s (ASC ASC Ambulatory surgery center, see there ) commercial mortgage pass-through certificates, series 1997-D5, is placed on Rating Watch Positive as follows: -- $87.7 million class A-2 at 'AA'; -- $52.6 million class A-3 at 'A+'; -- $26.3 million class A-4 at 'A'. -- $39.5 million class A-5 at 'B+' -- $43.9 million class A-6 at 'B' -- $21.9 million class A-7 at 'B-' -- $39.5 million class B-1 at 'C/DR5'; The Positive Rating Watch is the result of the final resolution of the Dr.'s Hospital loan that had been 3.1% of the transaction. The loan was secured by a vacant hospital in Chicago, IL and was the subject of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. filed on behalf of the trust by the special servicer against the depositor and mortgage loan seller to have the Dr.'s Hospital loan repurchased. The depositor, mortgage loan seller and the trust reached a settlement whereby the depositor and mortgage loan seller paid the trust $67.5 million. The loan has been liquidated from the trust as of the August 2006 distribution date, causing $29.9 million in losses. The losses are due primarily to the repayment of ASER Aser (ā`sər), variant of Asher. amounts, advances and other fees that had caused interest shortfalls to the trust. The shortfalls have been recovered on classes A-5 through B-4. Fitch will gather information on the Dr.'s Hospital loss, as well as updated information on other loans in the pool and will revisit the ratings once the information is analyzed. 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 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. 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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