Fitch Ratings Upgrades 2 Classes of MLMI 1995-C2.
NEW YORK--(BUSINESS WIRE)--March 15, 2004
Merrill Lynch Mortgage Investors, Inc.'s commercial pass-through certificates, series 1995-C2, are upgraded by Fitch Ratings as follows:
-- $14.6 million class D to 'AA+' from 'AA';
-- $11.6 million class E to 'BBB+' from 'BBB-'.
Fitch also affirms the following classes:
-- $44.6 million class A-1 'AAA';
-- $12.1 million class A-2 'AAA';
-- Interest only class IO 'AAA';
-- $12.2 million class B to 'AAA';
-- $14.6 million class C to 'AAA';
-- $11.7 million class F 'B-';
Fitch does not rate the $19.0 million class G certificates.
The rating upgrades are a result of continued overall pool performance and additional credit enhancement provided by loan payoff and amortization. As of the February 2004 remittance report, the pool balance has paid down 86% to $130.6 million from $962.4 million at issuance.
The certificates are collateralized by a pool of seasoned mortgages. The transaction's pay structure is modified pro rata, by which each class of certificates receives payments of principal and interest in the same percent as their proportion of the pool, with the exception of class G, which does not receive principal payments. Unscheduled payments are made to the most senior certificates, and losses are allocated to the least senior class, currently class G. Each class must maintain a target credit support level of a certain percent specified in the transaction's documents and determined by date.
Fitch recognized that after expected losses, the transaction may not be able to support the target credit enhancement level for class F. This class will then only receive interest, not principle until the required subordination levels are once again met.
Perimeter Square Shopping Center, the largest loan in the pool (12.3%) is real estate owned (REO). The loan transferred to special servicing when two tenants accounting for 52% of the GLA vacated. There are two other REO loans in the pool (5.1%), securitized by a hotel property in Ocala, FL (3.1%) and a vacant former Kmart located in Plainview, TX (2.3%). Fitch expects losses on each of these loans, however, the losses are anticipated to be absorbed by the non-rated class G.