Fitch Rates GE Business Loan Trust 2005-2.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 rates GE Business Loan Trust (GEBLT) 2005-2, as follows: -- $676,000,000 (notional amount) class IO certificates 'AAA'; -- $667,375,890 class A certificates 'AAA'; -- $61,367,898 class B certificates 'A'; -- $19,177,468 class C certificates 'BBB'; -- $19,177,468 class D certificates 'BB'. The class IO and A ratings reflect credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing provided by the subordination of the class B certificates (8.0%), the class C certificates (2.50%), the class D certificates (2.50%), the spread account, and expected excess spread. The class B rating reflects credit enhancement provided by the subordination of the class C certificates, class D certificates, the spread account, and expected excess spread. The class C rating reflects credit enhancement provided by the subordination of the class D certificates, the spread account, and expected excess spread. The class D rating reflects credit enhancement provided by the spread account and expected excess spread. The ratings address the payment of interest and principal in accordance with the terms of the legal documents. The certificates are backed primarily by a pool of conventional business loans and unguaranteed portion of Small Business Administration Section 504 Program (SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government 504) loans made to small businesses. The loans are secured by first liens on owner-occupied or single-tenant retail, office, industrial, or other commercial real estate. None of the underlying business loans are insured or guaranteed by any governmental agency. The loans were originated by GE Commercial Finance Business Property Corporation (GECF GECF Gas Exporting Countries Forum GECF General Electric Consumer Finance ) and the Small Business Finance (SBF SBF Studium Biblicum Franciscanum (Franciscan School of Biblical Investigations; Jerusalem, Israel) SBF Small Block Ford (automotive engine) SBF Single Black Female SBF Société des Bourses Francaises ) lending division of General Electric Capital Corporation (GECC GECC General Education Core Curriculum GECC General Electric Credit Corporation GECC Group Enabled Cluster Compiler GECC Geelong Ethnic Communities Council GECC Glen Ellyn Children's Chorus (Glen Ellyn, Illinois) ). This transaction represents the sixth term securitization of loans originated by the GECF and SBF business units. The trust assets consist primarily of 341 business loans made to 301 borrowers. The $767 million underlying collateral pool consists of approximately $500 million (65.2%) of conventional business loans originated by GECF and approximately $267 million (34.8%) of SBA 504 loans originated by SBF. The loans are secured by first liens on owner-occupied or single tenant retail, office, industrial, or other commercial real estate. The pool is diversified geographically, with loans from 41 states. The largest state concentrations are in California (12.9%), Texas (10.8%), Georgia (7.5%), New York (6.6%), and Florida (5.8%). Fitch took into consideration both quantitative and qualitative factors in evaluating GEBLT's credit enhancement structure. After reviewing historical default and recovery data on both an annual and static pool basis to develop an expected loss rate, Fitch analyzed cash flows reflecting stressed default rates, recovery rates, and recovery timing lags under several default timing scenarios. Fitch also assessed borrower and balloon payment concentrations over the life of the transaction. This review included a semiannual comparison of top borrower concentrations with expected credit enhancement. Fitch's ratings also took into consideration the historical delinquency and loss performance of GECF and SBF; the origination, underwriting, and servicing experience of GECF and SBF; the role of GECC as master servicer; and the sound legal and payment structure. The IO certificates will receive fixed-rate interest payments. Classes A, B, C, and D certificates will pay floating-rate interest based on a spread over one-month London Interbank Offered Rate London Interbank Offered Rate A short-term interest rate often quoted as a 1,3,6-month rate for U.S.dollars. (LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ). Principal will be paid to the class A, B, C, and D certificates on a pro rata basis. The interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. counterparty is General Electric Capital Services, Inc., a subsidiary of General Electric Company (GE). The class IO, A, B, C, and D certificates were privately placed pursuant to Rule 144A. 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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