Fitch Ratings Upgrades DLJ 98-CG1 Classes A-2 & A-3.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 23, 2002 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-CG1, 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: $39.1 million class A-2 to 'AA+' from 'AA' and $78.2 million class A-3 to 'A+' from 'A'. In addition, Fitch affirms the following classes: $142.8 million class A-1A, $835.3 million class A-1B, $39.1 million class A-1C and interest-only class S certificates at 'AAA', $23.5 million class A-4 at 'A', $70.4 million class B-1 at 'BBB', $23.5 million class B-2 at 'BBB-', $15.6 million class B-3 at 'BBB-', $66.5 million class B-4 at 'BB', $15.6 million class B-5 at 'BB-', $27.4 million class B-6 at 'B' and $15.6 million class B-7 at 'B-'. Fitch does not rate the $23.5 million class C certificates. The affirmations follow Fitch's annual review of the transaction, which closed in June 1998. The rating upgrades reflect the improved loan performance, moderate reduction of the pool collateral balance since closing, and the investment grade credit characteristics of three loans (10.5%). As of the September 2002 distribution date, the pool's aggregate certificate balance has decreased by 9.5% since closing, to $1.42 billion from $1.56 billion. The certificates are collateralized by 293 well-diversified fixed-rate mortgage loans, consisting primarily of multifamily (37%), retail (27%), and office (12%) properties, with concentrations in California (13%), 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 (12%), and Florida (10%). Fitch reviewed the performance and underlying collateral of the deal's three loans with investment grade credit characteristics, Rivergate Apartments (6.3%), Resurgens Plaza (2.2%) and the Camargue (2%). Debt service coverage ratios (DSCRs) for these loans are calculated using borrower-reported net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ) less required reserves Required reserves The dollar amounts, based on reserve ratios, that banks are required to keep on deposit at a Federal Reserve Bank. required reserves and debt service payments based on the original balance and Fitch's stressed refinance constants. All three of these loans have shown improved performance since closing. The Rivergate Apartments (6.3%) located in New York, NY, has 706 units and was built in 1985. Occupancy as of June 27, 2002 was 98%, which is relatively unchanged from 97% at June 30, 2002 and 97% at closing. The year-end (YE) 2001 DSCR DSCR See: Debt-service coverage ratio is 1.81 times (x), compared to 1.75x at YE 2000 and 1.36x at closing. The Resurgens Plaza (2.2%) is a 388,000 sq. ft. office property located in the Buckhead section of Atlanta, GA. Occupancy is 93% as of June 30, 2002, which is unchanged from 93% at June 30, 2001. The tenants are mainly professional service firms. The trailing twelve-month (TTM TTM Trailing 12 months. Often used with Earnings Per Share. ) June 30, 2002 DSCR is 2.28x, compared to 2.02x as of TTM June 30, 2001 and 1.84x at closing. The Camargue (1.9%) is a 261-unit multifamily property located in New York, NY, which was built in 1979. Occupancy is stable at 99% as of June 30, 2002 compared to 98% at June 30, 2001. The TTM March 31, 2002 DSCR is 1.86x, compared to 1.79x at June 30, 2001 and 1.37x at closing. GEMSA GEMSA Gel Electrophoretic Mobility Shift Assays Loan Services, the master servicer, provided YE 2001 borrower operating statements for 91% of the pool's outstanding balance. The weighted average DSCR for YE 2001 increased to 1.65x from 1.63x at YE 2000 and 1.45x at closing. Eight loans (3.0%) reported YE 2001 DSCRs below 1.00x, but they are all current with debt service payments. Currently, there are five loans (1.7%) being specially serviced, including the pool's four delinquent loans (1.5%). There are two (0.8%) 90-day delinquent loans secured by Texas retail properties. Two other delinquent loans are secured by a hotel in Chester, VA (0.3%, 90-days delinquent) and a hotel in Blue Ash, OH (0.4%, real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most as of March 2002). To date, $7.4 million in appraisal reductions have been calculated for these four loans. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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