Fitch Ratings Upgrades Danbury Fair Mall Trust Series 2001-DFM.Business Editors NEW YORK--(BUSINESS WIRE)--May 5, 2004 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 Danbury Fair Mall The Danbury Fair Mall is the largest shopping mall in the U.S. state of Connecticut and is one of the largest malls in New England. [1] It is located off of Interstate 84 and U.S. Route 7 in the city of Danbury opposite the Danbury Municipal Airport. Trust 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 2001-DFM, as follows: -- $11 million class C to 'AA+' from 'AA'; -- $19.5 million class D to 'A+' from 'A'. In addition, Fitch affirms the following classes: -- $15.6 million class A 'AAA'; -- Interest-only class X 'AAA'; -- $10.2 million class B 'AAA'; -- $18.5 million class E 'BBB'; -- $9 million class F 'BBB-'; -- $2.5 million class G 'BBB-'. The upgrades are due to the continued strong performance of the underlying collateral. Fitch analyzed the servicer provided financial statements for the year end (YE) 2003 as part of the review. Fitch's net cash flow (NCF See National Cristina Foundation. ), which was adjusted for occupancy costs, normalized capital costs, and non-cash items, was $20.8 million as of YE 2003, compared to $19.4 million at issuance, a 7.1% increase. The corresponding 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 ), based on a Fitch refinance constant and the actual current loan balance, was 1.36 times (x) compared to 1.23x at issuance. Danbury Fair Mall is located in Danbury, Fairfield County, CT and is anchored by Macy's, Sears, Filene's, JC Penney and Lord & Taylor. The collateral consists primarily of 501,205 square feet (sf) of in-line store space, the parcel of land encumbered Encumbered A property owned by one party on which a second party reserves the right to make a valid claim, e.g., a bank's holding of a home mortgage encumbers property. and leased to Lord & Taylor, and an adjacent parking facility (approximately 6,433 spaces). Major in-line tenants include: Old Navy, Express, The Gap, and Lerner 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 . Average in-line occupancy as of January 2004 decreased to 95.6% from 96.5% at issuance. Total mall sales as of YE 2003 have increased slightly from YE 2002, remaining in the mid-$400 per sf range. The certificates evidence interest in a trust fund consisting of two fixed-rate notes with an unpaid principal balance of $86.3 million as of April 2004, a 2.7% pay down since issuance. An additional $83.9 million note (as of April 2004), representing a portion of the 'AAA' rated piece of the capital structure is held outside the trust. Consistent with the sequential-pay structure of the transaction, principal is applied first to the $15.6 million note corresponding with the class A certificates, then to the non-contributed note, and finally to the remaining subordinate classes. The non-contributory note serves as collateral for the PNCMC 2001-C1 trust. Fitch will continue to monitor this transaction as surveillance is ongoing. |
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