Fitch Ratings Upgrades GMAC Series 1999-C3.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 GMAC's 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 1999-C3, as follows: -- $57.6 million class C to 'AA+' from 'AA-'; -- $20.2 million class D to 'AA-' from 'A'; -- $37.4 million class E to 'A-' from 'BBB+'; -- $23 million class F to 'BBB' from 'BBB-'. In addition, Fitch affirms the following classes: -- $21.8 million class A-1-a at 'AAA'; -- $191 million class A-1-b at 'AAA'; -- $520.6 million class A-2 at 'AAA'; -- Interest only class X at 'AAA'; -- $51.8 million class B at 'AAA'; Fitch does not rate classes G, H, J, K, L, M and N. 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 paydown and the defeasance of 7.23% of the pool. As of the June 2005 distribution date, the pool's aggregate certificate balance has decreased 10.6% to $1.02 billion from $1.15 billion at issuance. Of the original 138 loans, 131 remain outstanding in the pool. Fitch reviewed Equity Inns Portfolio, the one credit assessed loan in the pool. Fitch maintains the below investment grade credit assessment. Equity Inns Portfolio is secured by 19 limited service and extended stay hotels Extended Stay Hotels (ESH) is a hotel brand that is the culmination of a rapid expansion in the extended stay hotel extended stay lodging market. Extended Stay Hotels is now one of the most recognized brands in the extended stay industry. located across 12 states. The portfolio had experienced a decrease in net cash flow since issuance, primarily due to the economic conditions that had impacted the hotel industry. However, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. servicer provided operating statements, the properties demonstrated improved performance in 2004 with a 17.2% increased in Fitch stressed cash flow compared to 2003. As of year-end (YE) 2004, the 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 ) has increased to 1.59 times (x) compared to 1.32x at YE 2003, but still remains lower than 1.68x at issuance. There are five loans (9.11%) in special servicing. The largest loan, (5.72%) is secured by a retail outlet center in Niagara Falls, NY, and is 90 days delinquent. The loan transferred to the special servicer as a result of monetary default. The special servicer is negotiating with the borrower and is evaluating possible workout options. Losses are possible upon the liquidation of this loan. The second largest loan in special servicing (2.25%) is secured by three multifamily properties totaling 660-units and located across various states. The loan transferred to the special servicer due to imminent default. The special servicer is in negotiations with the borrower and is assessing the case for the best possible workout. The loan is 30 days delinquent and no losses are currently expected. 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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