Fitch Ratings Upgrades Lehman P-T Securities Series 1994-A.Business Editors CHICAGO--(BUSINESS WIRE)--Dec. 18, 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 Lehman Pass-Through Securities Pass-through securities A pool of fixed income securities backed by a package of assets (i.e., mortgages) where the holder receives the principal and interest payments. Related: Mortgage pass-through security Inc., Trust Certificates, series 1994-A, as follows: -- $4.9 million class 2 to 'A' from 'B'. Fitch does not rate the $5.4 million class 3 certificates and the class 1 certificates has been paid in full. The securities were issued in conjunction with the Federal Home Loan Mortgage Corporation Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, privately owned, government-sponsored organization that uses private capital to buy home mortgages as a means to help lower housing costs. Multifamily REMIC Mortgage Participation Certificates, Series 1762. The upgrade reflects the transaction's paydown along with Fitch's concern with the ability of certain loans to refinance at maturity in February 2004. At this time it is not known whether the loans will be able to refinance given the decline in performance. As of the December 2003 distribution date, the pool's collateral balance has been reduced by 91% to $9.5 million from $108.3 million at issuance. Of the original 39 loans in the pool, four are outstanding. 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 collected year-end (YE) 2002 operating statements for 100% of the pool. The YE 2002 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 ) for these loans declined to 1.02 times (x) from 1.12x at YE 2001 and 1.48x at issuance. Three loans (74%) reported a YE 2002 DSCR below 1.00x. Fitch is concerned with the decline in DSCR along with the upcoming maturities. However, all loans remain current and the trust has not realized any losses. Fitch will continue to monitor the refinancing efforts of the four loans remaining in the pool. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion