Fitch Ratings Upgrades MCF's 1996-MC2 Pass-Thru Ctfs.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 12, 2002 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 Mortgage Capital Funding, Inc.'s (MCF) multifamily/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-MC2, $27.5 million class B certificates to 'AA+' from 'AA'. In addition, Fitch upgrades the following classes: $22.9 million class C to 'A+' from 'A' and $18.3 million class D to 'BBB+' from 'BBB'. Fitch also affirms $28.1 million class A-1, $24.3 million class A-2, $166 million class A-3 and interest-only class X certificates at 'AAA'. Fitch does not rate the $11.5 million class E, $25.2 million class F, $16 million class G, and $11.4 million class H certificates. The upgrades follow Fitch's annual review of the transaction, which closed in December 1996. As of the August 2002 distribution date, the pool's aggregate certificate balance has been reduced by 23%, to $351.2 million from $458.1 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, collected year-end (YE) 2001 property financial statements for 79% of the transaction. 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 (DSCR DSCR See: Debt-service coverage ratio ) for these loans was 1.46 times (x), compared to 1.42x at issuance for the same loans. Four loans (4.9% of the outstanding balance) are 90+ days delinquent and are specially serviced. Two of the specially serviced loans (3.9%) are cross-collateralized and cross-defaulted limited service hotels located in Charlotte, NC. Both properties cited problems in the travel industry combined with an overbuilt o·ver·build v. o·ver·built , o·ver·build·ing, o·ver·builds v.tr. 1. To build over or on top of. 2. To construct more buildings in (an area) than necessary. 3. hotel market in Charlotte as the main cause of default on their monthly payments. A forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. agreement to bring both of these loans current is being negotiated. In addition to the four specially serviced loans, there are three loans (1.6%) with DSCRs below 1.00x. Fitch applied various hypothetical stress scenarios taking into consideration all of the above concerns. Even under these stress scenarios, the resulting subordination levels were sufficient to upgrade the designated classes. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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