Fitch Ratings Upgrades LTC 1996-1.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 3, 2003 LTC'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 1996-1, 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: -- $8.7 million class B to 'AAA' from 'AA'; -- $7.6 million class C to 'A' from 'A-'. The following classes are affirmed: -- $37.4 million class A 'AAA'; -- $717 class LR 'AAA'; -- $717 class R 'AAA'; -- $5.1 million class D 'BBB-'; -- $11.8 million class E 'B-'; -- $4.5 million class F 'CCC'. Fitch does not rate the $4.7 million class G. The rating upgrades reflect the increase in 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 levels attributed to loan payoffs and amortization. As of the November 2003 distribution date, the pool's aggregate collateral balance has been reduced by 29% to $79.8 million from $112.5 million at issuance. GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage Corp., the master servicer, provided year-end (YE) 2002 operating performance for 70% of the outstanding balance. Based on the information provided the 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 (DSCR DSCR See: Debt-service coverage ratio ) decreased to 1.49 times (x) from 1.77x at YE 2001 and 2.39x at issuance. One loan (1.4%) is delinquent and in special servicing. Four loans (33%), including three of the top five loans, had YE 2002 DSCRs below 1.00x, however none of these loans are delinquent. The pool remains highly concentrated by property type, with 100% of the pool secured by healthcare properties. Fitch will continue to monitor this transaction as surveillance is ongoing. |
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