Fitch Ratings Upgrades GS Mortgage 1997 GL-I.Business Editors CHICAGO--(BUSINESS WIRE)--March 5, 2003 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 GS Mortgage Securities Corp. II'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 1997 GL-I, $14.7 million class C to 'AAA' from 'AA+'. In addition, Fitch upgrades $53.8 million class D to 'AA+' from 'AA-' and $14.7 million class E to 'AA-' from 'A+'. In addition, Fitch affirms the following classes: $23.8 million class A-1, $8.7 million class A-2A, $240.9 million class A-2B, $30 million class A-2C, $222.2 million class A-2D, $78.2 million class B, and interest only classes X-1A, X-1B, and X-2 at 'AAA', $48.9 million class F at 'BBB+', $58.6 million class G at 'BBB', $34.2 million class H at 'BB+', and $9.7 million class M at 'BBB'. The rating on class M, whose sole collateral is two partnership level loans associated with the Montehiedra loan, is dependent on Fitch's rating of Vornado Realty LP, the guarantor of the loans; the class M certificate does not provide credit support to any other class of certificates. The rating upgrades and affirmations follow Fitch's annual review of the transaction, which closed in August 1997. The upgrades reflect the increase in credit characteristics due to the defeasance of the largest loan (29% of the transaction), previously secured by the Cadillac Fairview The Cadillac Fairview Corporation is a development corporation which is a wholly owned subsidiary of the Ontario Teachers' Pension Plan. Cadillac Fairview owns, develops and manages property, malls and large office and retail spaces, mostly in Canada and the United States. Pool, with U.S. Treasuries. As part of the annual review, Fitch examined the performance of each loan and its underlying collateral. The corresponding debt service coverage ratios (DSCRs) noted below are Fitch stressed based on the application of a refinance constant to the original principal balance. For the pool as a whole, the DSCR DSCR See: Debt-service coverage ratio is 2.05 times (x), compared to 1.64x at issuance. Six of seven loans in the pool (90%) have investment grade credit assessments. Century Plaza Towers Century Plaza Towers are two 44-story, 571 feet tall twin towers located at 2029 and 2049 Century Park East in Century City in Los Angeles, California. The towers were completed in 1975 and designed by Minoru Yamasaki. (26%) is secured by two twin 44-story class A office buildings located in Century City, CA, with 2.3 million square feet (sf) of office space, 27,460 sf of arcade retail space, and a six-level subterranean parking structure. The DSCR for year-end (YE) 2002 is 2.12x, an increase from 1.62x at issuance. The current occupancy fell slightly to 89% from 94% at YE 2001. In addition, Fitch's Property Market Metric (PMM PMM Purchase Money Mortgage PMM Project Management Methodology PMM Perpetual Motion Machine PMM Permanent Magnet Motor PMM Professional Murder Music (band) PMM Precision Measuring Machine PMM Power Management Mode ) score for office properties in the subject's region is '2' indicating a stable market. Brandywine A (11%) is currently collateralized by 20 office properties, four industrial/flex properties and two undeveloped parcels of land. The trailing twelve months In commerce, the trailing twelve months (TTM) is a moving measurement (for example, an average or a sum) over the 12 previous months, using the most recent data available. Also sometimes known as last twelve months (LTM). (TTM TTM Trailing 12 months. Often used with Earnings Per Share. ) September 2002 DSCR is 2.12x, compared to 2.09x for YE 2001 and 2.02x at issuance. The weighted average (WA) occupancy has dropped to 89% as of August 2002 from 91% as of September 2001. 380 Madison Avenue (11%) is secured by the leased fee interest in a 25-story office building in midtown Manhattan in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , which carries a PMM score of '2'. The borrower, ComMet 380, Inc., leases 100% of the building to Spartan Madison Corp., which is required to pay annual rent until the lease expiration in 2014. J.P. Morgan Chase occupied 34% of the space and did not renew its sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. at the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. of September 2002. This brought the physical occupancy down to the current level of 57%. The YE 2001 DSCR is 2.24x stable from YE 2000 of 2.24x. The DSCR is expected to be stable through 2003 with the next scheduled rent increase in January 2004. Brandywine C (10%) is currently secured by 16 office, one industrial and 14 flex/research and development properties covering 1.6 million square feet. The TTM September 2002 DSCR is 1.66x, compared to 1.80x for YE 2001 and 1.63x at issuance. The decline in DSCR is primarily caused by the drop in the WA occupancy to 79% as of August 2002 from 99% as of November 2001. Ritz Plaza (7%) is secured by a 40-story, 479-unit multifamily building in west midtown Manhattan in New York City. The YE 2002 DSCR remains stable at 1.94x compared to YE 2001 of 1.95x. The occupancy as of November 2002 is 99%. The PMM score for multifamily properties in midtown Manhattan is '2'. Montehiedra (6%) is secured by Montehiedra Town Center, a 525,000-sf anchored retail shopping mall located near San Juan, Puerto Rico San Juan (IPA: [saŋ hwaŋ]) (from the Spanish San Juan Bautista, "Saint John the Baptist") is the capital and largest municipality on Puerto Rico. . The four anchor tenants at the center are Kmart (24% of the property's net rentable area), Masso Expo (20%), Caribbean Theatres (9%), and Marshall's (5%). The TTM September 2002 DSCR is 2.01x down slightly from YE 2001 of 2.04x. The TTM September 2002 sales for the anchor tenants remain strong. |
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