Fitch Ratings Upgrades DLJ 1998-CF1.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 -- DLJ DLJ Distributor License for Java DLJ Donaldson, Lufkin & Jenrette Inc. DLJ Drive Like Jehu (band) DLJ Defence Laboratory Jodhpur (India) DLJ Dead Letter Journal Commercial Mortgage Corp.'s commercial mortgage pass-through certificates, series 1998-CF1 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: -- $10 million class B-3 to 'BBB' from 'BBB-'; -- $27.1 million class B-4 to 'BB+' from 'BB'. In addition, the following classes are affirmed by Fitch: -- $465.1 million class A-1B 'AAA'; -- Interest-only classes CP and S 'AAA'; -- $50.4 million class A-2 'AAA'; -- $50.3 million class A-3 'AA'; -- $41.9 million class B-1 'A'; -- $6.3 million class B-7 'B-'. Fitch does not rate the $14.7 million class B-2, $15 million class B-5, $15 million class B-6 or $13.7 million class C certificates. Class A-1A has paid in full. The upgrades reflect improved 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 levels as a result of loan performance and amortization. As of the May 2005 distribution date, the pool's aggregate certificate balance has been reduced 15.4% since issuance, to $709.6 million from $838.8 million. The largest loan in the pool, the Showboat loan (12.9%), is the only credit assessed loan in the transaction. The Dec. 31, 2004 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 1.20 times (X) compared to 1.14x at issuance. The increase is attributed to the annual rent steps based on the Consumer Price Index. DSCR is calculated using servicer provided ground lease payments and actual debt service with a refinance constant. Fitch maintains an investment grade credit assessment on this loan. The pool has a 20.3% exposure to five hotel properties. The risk of this property type concentration is mitigated by the credit quality of the Showboat loan and the strong performance of the second largest loan (4.2%) in the pool. The second largest loan is secured by a full service hotel located in Washington, DC. The property has shown improved performance since issuance. Four loans are currently in special servicing (1.7%), the largest loan is secured by a hotel property (0.8%) in Cleveland, OH and is real-estate owned (REO reo Noun NZ a language [Maori] ). The property is currently under contract for sale and losses are expected. The second largest loan (0.6%), is secured by a multifamily property in Winston-Salem, NC and is 60 days delinquent. The special servicer has appointed a receiver at the property and is pursuing foreclosure. |
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