Fitch Ratings Upgrades BCF L.L.C. Series 1997-C1.
NEW YORK--(BUSINESS WIRE)--June 17, 2003
Fitch Ratings upgrades BCF L.L.C.'s commercial mortgage pass-through certificates, series 1997-C1, $2.6 million class F to 'AA' from 'BB+'. In addition, Fitch affirms the interest-only class X-2 at 'AAA'. The ratings for classes E and E-IO have been withdrawn since Fitch's last review as the classes have been paid in full. The class G and class TA certificates are not rated by Fitch.
The upgrades are primarily attributable to significant increases in subordination levels due to amortization, prepayments and payoffs of matured loans. The pool's collateral balance has been reduced by 92%, as of the May 2003 distribution, to $10.6 million from $128.4 million at closing. The pool's 72 of 552 original loans remain, with an average loan size of $147,000, down from $233,000 at closing. The borrowers are not required to report financial information for these loans. However, the loans are well-seasoned, with staggered maturity dates; 58 loans (85%) have over ten years of seasoning. Another strength of this deal is that 60 loans (83%) are fully amortizing.
Currently, there are fourteen loans (19.2%) being specially serviced by Ocwen Federal Bank, FSB. All of the pool's eight delinquent loans (16.5%) are being specially serviced, including one (0.8%) that is real estate owned. Fitch considers the unrated class G as more than sufficient to absorb any expected losses on these loans of concern. Since closing, the pool has realized losses totaling $4.7 million from the disposition of twenty assets.
Fitch will continue to monitor this transaction, as surveillance is ongoing.