Fitch Ratings Affirms Three Classes of CSFB 2005-TFL1.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. has affirmed the following classes of Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. Mortgage Securities Corp., series 2005-TFL1: --$7.5 million class J at 'AAA'; --$15.0 million class K at 'AAA'; --$22.5 million class L at 'A-'; --Interest only class A-X-1 at 'AAA'. Classes A-1, A-2, B, C, D, E, F, G and H, along with Interest only class A-X-2 have paid in full. The transaction currently consists of one loan on The Galleria Office Towers in Houston, TX. As of the November 2007 distribution report, the transaction has paid down 95.5% to $45.0 million from $1.0 billion at issuance, with six of the original seven loans having been paid in full. The affirmations are based on the stable to improving performance of the remaining loan, as well as the low loan leverage on a per square foot basis. Fitch analyzed the servicer-provided second quarter 2007 financial statements, the borrower's budget-to-actual reports as of September 2007, and the October 2007 property rent rolls. Based on that analysis, the Fitch stressed debt service coverage ratio The debt service coverage ratio (DSCR), or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment real estate. It is a popular benchmark used in the measurement of an income-producing property’s ability to produce has improved to 1.85 (x) times from 1.47x at issuance. While overall occupancy at the collateral has increased to 91.3% as of October 2007, up from 78.9% at issuance, two of the buildings have vacancy rates above the West Loop submarket vacancy rate of 10.4%. Tower II was 16.3% vacant as of Oct. 31, 2007 and the Financial Center was 11.4% vacant. Tower I was 97.5% occupied. In addition to the $42 per square foot (sf) debt that encumbers the collateral in this transaction, there is a subordinate B note of $29 million and subordinate mezzanine financing Mezzanine Financing A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the of $10 million. The total debt on the property is $76/sf. The loan, which matured in December 2006, was extended at that time for one year. The borrower has recently elected to extend the loan for another year, through Dec. 9, 2008. There is a final one-year extension option remaining. The loan is a floating rate, interest-only loan with a 133-basis point spread over LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). and a LIBOR cap of 4.70%. 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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