Fitch Ratings Downgrades ASC 1997-D5 P-T Certificates.Business Editors CHICAGO--(BUSINESS WIRE)--Jan. 23, 2003 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 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 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 1997-D5 $17.4 million class B-6 to 'D'. In addition, Fitch places the following classes on Rating Watch Negative: $13.2 million class B-5, $13.2 million class B-4, $8.8 million class B-3, $39.5 million class B-2 and $39.5 million class B-1, which have respective ratings of 'C', 'C', 'CC', 'B' and 'B+'. The downgrade to the class B-6 is a result of the loss in the amount of $4.5 million that was applied to that class on the January distribution date. The loss is attributed to the liquidation of a vacant Builders Square property located in El Paso, TX. The total realized loss Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. on the loan was $5.8 million. After applying the loss to the most subordinate class B-7and B-7H, the remaining $4.5 million was allocated to the B-6 class. The five classes were placed on Rating Watch Negative due to the interest shortfalls that have been accruing on those classes. The interest shortfalls are primarily due to ASERs that resulted from appraisal reductions on several specially serviced loans, including the Hyde Park loan. Fitch is in the process of gathering information on the credit-assessed loans and the loans of concern, including the specially serviced loans and will revisit the ratings of this deal over the next few weeks. |
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