Fitch Ratings Upgrades JP Morgan Chase 2002-FL1A.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 JP Morgan Chase'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 2002-FL1A, as follows: -- $6.8 million class C certificates to 'AAA' from 'AA'; -- $7.3 million class D certificates to 'AAA' from 'A+'; -- $7.2 million class E to 'AAA' from 'BBB+'; -- $4.3 million class F certificates to 'AAA' from 'BBB'; -- $7 million class G certificates to 'A' from 'BBB-'. Interest-only class X-FL is affirmed at AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. . Classes A-1, A-2, B, and interest-only class X have been reduced to zero. Fitch does not rate the $11 million class H, $1.6 million class J, $1.9 million class K, or $12.5 million class NR certificates. The rating upgrades are a result of increased pool performance and additional 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 provided by paydown. The transaction has been reduced 91.1%, to $57.5 million as of the January 2005 distribution date from $641.2 million at issuance. There are six interest-only loans remaining resulting in limited loan diversity. The top five loans represent 96% of the pool, the largest of which has transferred to special servicing due to maturity. The loan remains current and is expected to exercise its extension option. The other five loans, which matured in October of 2004, are currently exercising their extension options. The original deal structure was modified pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. but has reverted to sequential pay, based on the occurrence of two sequential pay triggers. Ten or less loans are currently remaining in the pool, and the remaining unpaid principal balance is less than 15% of the cutoff date balance. Although Fitch is concerned with the floating-rate, interest-only characteristics of the deal, significant paydown, and increased subordination warrant the upgrades. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion