Fitch Ratings Upgrades MCF Series 1996-MC2 Pass-Thru Ctfs.Business Editors NEW YORK--(BUSINESS WIRE)--July 2, 2003 Mortgage Capital Funding, Inc.'s (MCF) 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 are upgraded to 'AAA' from 'AA+' 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. . Fitch also upgrades $22.9 million class C to 'AA-' from 'A+' and $18.3 million class D to 'A-' from 'BBB+'. In addition, Fitch affirms $76,000 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 or $11.4 million class H certificates. Class A-1 has been paid in full. The upgrades follow Fitch's annual review of the transaction, which closed in December 1996. The rating upgrades reflect the stable loan 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 the 35% reduction of the pool collateral balance since closing from $458 million to $299 million. 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 financials for 41% of the pool balance. Based on the information provided, the resulting 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 is 1.47 times (x) compared to 1.44x at issuance for the same loans. Currently, six loans (7.5%) are in special servicing. The largest loan (2.8%) is secured by a hotel property in Charlotte, NC. The loan transferred when the borrower filed for bankruptcy in January, and the special servicer is currently reworking 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 fit with the bankruptcy plan. The next largest specially serviced loan (1.5%) is secured by a hotel property in Charlotte, NC. This loan is cross-collateralized and cross-defaulted with the largest loan in special servicing; a forbearance is being negotiated for this loan as well. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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