Fitch Ratings Upgrades 6 Classes of MCF 1998-MC1.Business Editors CHICAGO--(BUSINESS WIRE)--Sept. 30, 2003 Mortgage Capital Funding, Inc.'s, multifamily/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-MC1 are upgraded by 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. as follows: -- $51.8 million class B to 'AAA' from 'AA'; -- $71.2 million class C to 'AA+' from 'A+'; -- $12.9 million class D to 'AA' from 'A'; -- $64.7 million class E to 'A' from 'BBB+'; -- $12.9 million class F to 'A-' from 'BBB'; -- $38.8 million class G to 'BBB' from 'BBB-'. Fitch also affirms the following classes: -- $105.1 million class A-1 'AAA'; -- $658.2 million class A-2 'AAA'; -- Interest-only class X 'AAA'; -- $22.7 million class M 'B-'. The $51.8 million class H, $12.9 million class J, $12.9 million class K, $32.4 million class L and $12.7 million class N certificates are not rated by Fitch. The rating upgrades reflect the consistent loan performance combined with the reduction of the pool's collateral balance, which has resulted in increased subordination levels. As of the September 2003 distribution date, the transaction's aggregate principal balance has decreased 10.3%, to $1.16 billion from $1.29 billion at closing. GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage Corp, the master servicer, collected year-end (YE) 2002 financials for 93% of the pool balance. Based on the information provided the resulting YE 2002 weighted average 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 ) is stable at 1.55 times (x) compared to 1.55x as of YE 2001 for the same loans. Currently, five loans (2.0%) are in special servicing. The largest specially serviced loan, Shops at Sterling Ponds I, is secured by a retail property in Sterling Heights Sterling Heights, city (1990 pop. 117,810), Macomb co., SE Mich., on the Clinton River; platted 1835 as Jefferson Township, renamed 1838, inc. 1968. Largely rural until the mid-20th cent., the city grew as a suburb of Detroit, 19 mi (31 km) to the northeast. , MI and is currently 90 days delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. . Kmart and Builders Square Builders Square was founded as a big-box home improvement retailer headquartered in San Antonio, Texas. A subsidiary of Kmart, its format was quite similar to Home Depot and Lowe's with floor space of about 100,000 square feet. vacated, leaving the property 100% vacant. The next largest specially serviced loan, King James Office Buildings, is secured by two office properties in Westlake, OH and is currently 90 days delinquent. The two properties are exhibiting vacancies of 41% and 35%. Twenty loans (8.5%) reported YE 2002 DSCR's below 1.00x. One of the loans (0.5%), Page Marriott, is located in Page, AZ and has seen a decline in travel to the area. Fitch applied various stress scenarios including assumed losses on some of the loans of concern. Even under these stress scenarios subordination levels remain sufficient to justify the upgrades. Fitch will continue to monitor this transaction for any change in performance. |
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