Fitch Ratings Upgrades J.P. Morgan 1997-C4 Certificates.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 17, 2002 J.P. Morgan Commercial Mortgage Finance Corp.'s 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-C4, 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: $24.4 million class B to 'AAA' from 'AA+', $22.4 million class C to 'AA+' from 'A+', $20.3 million class D to 'A' from 'BBB+', $6.1 million class E to 'BBB+' from 'BBB-', $26.5 million class F to 'BB+' from 'BB' and $16.3 million class G to 'B' from 'B-'. The $9.2 million class A2, the $138.7 million class A3, and the interest-only class X certificates are affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. at 'AAA' by Fitch. Fitch does not rate the $12.2 million class NR certificates. The rating actions follow Fitch's annual review of the transaction, which closed in February 1997. The upgrades are primarily attributable to an increase in subordination levels due to loan payoffs and amortization. As of the November 2002 distribution date, the pool's aggregate balance has been reduced by 32% to $276.1 million from $407 million at issuance; 22 of the original 106 loans have paid off during the same period. There are currently no delinquent or specially serviced loans. ORIX, the master servicer, collected year-end (YE) 2001 operating statements operating statement See income statement. for approximately 97% of the outstanding pool balance. The YE 2001 weighted average 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 (WADSCR WADSCR Weighted Average Debt Service Coverage Ratio ) for these loans is 1.73 times (x), compared to 1.77x as of the prior year's review, and 1.58x at issuance. Seven loans (6.8% by principal balance) reported YE 2001 DSCRs below 1.00x. The largest of these loans (1.3% of pool) is secured by a retail center in Houston, TX. The decline in performance was due to roadway construction that led customer traffic away from the center and ultimately caused tenants to vacate To annul, set aside, or render void; to surrender possession or occupancy. The term vacate has two common usages in the law. With respect to real property, to vacate the premises means to give up possession of the property and leave the area totally devoid of contents. . The road construction project has been completed and, 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. the property manager, occupancy has significantly increased. Fitch is somewhat concerned about the retail (38% of the pool), hotel (8%), and health care (7.8%) concentrations in the pool. The high retail concentration is mitigated by the strong WADSCR, which has increased to 1.73x from 1.50x at issuance. While the YE 2001 WADSCR for hotel loans declined to 1.52x from 2.20x during the same period, the YE 2001 WADSCR for health care loans has remained stable, at 1.76x, compared to 1.79x at issuance. All of these loans remain current. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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