Fitch Ratings Upgrades Classes D & E of LBCMT, Series 1996-C2.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 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. upgrades the following classes of LB Commercial Conduit Mortgage Trust II's commercial 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 1996-C2 and removes them from Rating Watch Positive (RWP RWP - Remote Write Protocol ): -- $15.9 million class D to 'AAA' from 'AA+' -- $7.9 million class E to 'AAA' from 'A'. In addition, the following classes are affirmed: -- $507,146 class A at 'AAA'; -- $27.8 million class B at 'AAA'; -- Interest-only class IO at 'AAA'; -- $23.8 million class C certificates at 'AAA'; -- $21.8 million class F at 'B+'. The $6.4 million class G remains at 'D'. Classes H and J have been reduced to zero due to losses. The upgrades are the result of 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 due to loan payoffs and amortization. The balance of the transaction has been reduced 74% to $104 million from $397 million at issuance. Of the original 109 loans in the transaction, only 40 remain outstanding. The transaction has incurred $23.4 million in losses since issuance. Currently, three loans are in special servicing, representing 9.95% of the transaction. The largest loan in special servicing (7.75%) is a 284-unit multifamily property in Grand Blanc, MI. The loan transferred in December 2003 as the result of a monetary default. The special servicer is currently in the process of foreclosing on the property and exploring a note sale. Fitch expects a loss when the loan is liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. . The remaining two specially serviced loans are limited service hotels and have both been brought current. The loans remain specially serviced due to delinquent escrow payments or fees. The special servicer is working with the borrowers to cure the remaining defaults. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and 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 this site, at all times. This document will remain on the public site for seven days. |
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