Fitch Ratings Upgrades GS Mortgage Sec. Series 2001-GL III.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 15, 2003 Fitch 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 2001-GLIII: $50.0 million class B to 'AA+' from 'AA', $18.8 million class C to 'AA' from 'AA-', $28.1 million class D to 'A+' from 'A'; $7.1 million class F-DDR to 'A-' from 'BBB+', $5.9 million class G-DDR to 'BBB+' from 'BBB' $8.2 million class H-DDR to 'BBB' from 'BBB-', $10.5 million class F-NCF to 'A-' from 'BBB+', $5.9 million class G-NFC to 'BBB+' from 'BBB', $6.0 million class F-GGP to 'A-' from 'BBB+' $3.5 million class G-GGP to 'BBB+' from 'BBB', and $3.5 million class H-GGP to 'BBB' from 'BBB-'. In addition, the following classes are affirmed: $77.2 million class A-1, $412.7 million class A-2, and interest only classes X-1 and X-2 at 'AAA'. Fitch does not rate classes E, F-919, and J-GGP. The upgrades reflect the continued strong performance of the pool since issuance. The certificates are collateralized by five mortgage loans on 11 properties, with a significant retail concentration (regional mall, 43%; anchored retail, 22%). As of the November 2003 distribution date, the pool's collateral balance has been reduced by 1.9% to $696.5 million from $709.6 million at issuance. Fitch analyzed the performance of each loan and its underlying collateral. The debt service coverage ratios (DSCRs) noted below are calculated using servicer-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. adjusted for capital expenses, and Fitch's stressed refinance constant. 919 Third Avenue (35%) is the largest loan in this transaction, and is secured by an office property in Midtown Manhattan. The property's occupancy increased to 99% as of September 30, 2003 from 93% at issuance. Higher occupancy and new leases signed at higher rental rates have increased Fitch's stressed net cash flow (NCF See National Cristina Foundation. ) 9% since issuance. The DSCR DSCR See: Debt-service coverage ratio as of 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. ) ending September 30, 2003 increased to 1.47 times (x) compared to 1.39x at issuance. DDR (Double Data Rate) Refers to an SDRAM memory chip that increases performance by doubling the effective data rate of the frontside bus. For more details, see SDRAM. DDR - Double Data Rate Random Access Memory Portfolio (22%) is collateralized by five anchored retail centers. Occupancy decreased slightly to 95% as of TTM June 2003 from 97% at issuance; however, rental rates at the properties increased resulting in an improved net cash flow. The DSCR as of TTM June 30, 2003 increased to 1.51x compared to 1.31x at issuance. All of the properties are managed by Developers Diversified Realty (DDR), a publicly traded REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). (Fitch rated 'BBB-'). Northridge Fashion Center Northridge Fashion Center is a large shopping mall located in Northridge, California. It opened in 1971. It was severely damaged during the Northridge Earthquake in 1994, but renovated extensively in 1995 and 1998. , a super-regional mall located in Los Angeles, CA, collateralizes a $138.3 million loan (20%). The TTM June 2003 DSCR has improved to 1.45x from 1.37x at issuance. In-line occupancy has increased to 96% as of June 2003 from 95% at issuance. The sales remain stable with issuance figures. The GGP GGP GPS (Global Positioning System) Guidance Package GGP Gateway-Gateway Protocol GGP Gotta Go Pee GGP Global Geodynamics Project GGP Globalization, Growth and Poverty (Canada) GGP Gotta Go Potty Portfolio (14%) is collateralized by three regional malls located in tertiary markets: Springfield, OR, Bowling Green, KY, and Jefferson, MO. Although, the weighted average occupancy decreased to 86% as of June 2003 from 90% at issuance, the average rents have increased. The portfolio has strong sponsorship in GGP, a publicly traded REIT (Fitch rated 'BB+'). The sales remain stable with issuance figures. The DSCR is 1.28x compared to 1.23x at issuance. Willowbrook Mall, a regional mall located in Houston, TX, collateralizes a $65.9 million loan (9%). May Department Stores The May Department Stores Company was a department store chain founded in 1877 by David May in Leadville, Colorado. Its headquarters moved to St. Louis, Missouri in 1905, and the company went public in 1911. purchased the former Montgomery Wards in April 2001 and opened a Foley's Men's and Home Furnishing store. May Department Stores recently announced it will be closing the Lord and Taylor at this location, but the company will continue to pay rent through lease expiration in December 2009. Inline occupancy remains stable at 88% as of June 2003, compared to 87% at issuance. The mall also benefits from strong in-line sales. The trailing twelve months ending June 2003 DSCR on the trust mortgage amount has increased to 2.03x compared to 1.89x at issuance. Fitch will continue to monitor the transaction, as surveillance is ongoing. |
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