Fitch Ratings Upgrades 1 Class of Merrill Lynch 1998 CAN-1.CHICAGO -- Fitch upgrades Merrill Lynch'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-CAN 1, as follows: -- $8.2 million class D to 'AA+' from 'AA-'. The remaining classes are affirmed as follows: -- $43.4 million class A-2 at 'AAA'; -- Interest-only class X at 'AAA'; -- $9.1 million class B at 'AAA'; -- $11.8 million class C at 'AAA'. Fitch does not rate the $10.0 million class E, $3.5 million class F and the $4.7 million class G certificates. Class A-1 has paid in full. The rating upgrade is due to the collateral paydown and subsequent increased 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 since issuance. As of the December 2006 distribution date, the transaction's balance declined by 50.2% since issuance, to $90.7 million from $182.1 million, and the number of loans to 17 from 32. The pool is comprised entirely of loans secured by properties in Canada. The properties are interspersed across seven provinces, with the three highest concentrations in Ontario (31.6%), Alberta (30.8%), and Manitoba (21%). The largest loan in the transaction, Portage Place Portage Place is a mixed-use shopping centre located on the north side of Portage Avenue, between Vaughan and Carlton Streets in downtown Winnipeg. It opened on September 17, 1987[1] [2]. Shopping Center (14.3%), is collateralized by a retail center located in Winnipeg, MB. The year end 2005 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 (DSCR DSCR See: Debt-service coverage ratio ) was 0.63 times (x), which is an improvement from the YE 2004 DSCR of 0.51x. In 2001, the property lost a major tenant and continues to have issuances with occupancy. The borrower has been attempting to re-lease the vacant space and the loan remains current. In addition, 50% of the loan balance is guaranteed by the borrower. 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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