Fitch Ratings Upgrades Morgan Stanley's 1997-WF1 $445.1M P-T Ctfs.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 10, 2002 Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Capital I, Inc.'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 1997-WF1 are upgraded by Fitch Ratings Fitch RatingsAn 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: $30.8 million class B to 'AAA' from 'AA+', $33.5 million class C to 'AA' from 'A' and $28 million class D to 'A-' from 'BBB'. In addition, Fitch has affirmed the $50 million class A-1, $230.2 million class A-2, and interest-only class X-1 commercial mortgage pass-through certificates at 'AAA'; $33.6 million class F at 'BB'; $5.6 million class G at 'BB-'; $8.4 million class H at 'B' and $8.4 million class J at 'B-'. Fitch does not rate the $11.2 million class E or $5.6 million class K certificates. The ratings upgrades and affirmations follow Fitch's annual review of the transaction, which closed in June 1997. The rating upgrades are a result of the increased 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 due to loan payoffs, lack of realized losses in the pool, and a stable 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 (WADSCR WADSCR Weighted Average Debt Service Coverage Ratio ). The certificates are currently collateralized by 116 fixed-rate mortgage loans. The properties are located in 24 different states, with significant concentrations in California (32%), Colorado (8%), Arizona (7%), and Texas (7%). Property type concentrations include retail (43%), multifamily (22%), industrial (16%), office (9%), and lodging (7%). As of the September 2002 distribution date, the pool's aggregate principal balance has decreased by 20% to $445.1 million from $559.2 million at closing due to loan amortization and paydowns. Wells Fargo, the master servicer, collected year-end 2001 property financial statements for 93% of the loans. Based on these borrower provided financials, the pool's 2001 WADSCR increased to 1.61x from 1.58x at year-end 2000 and 1.43x at closing for these loans. Two loans (0.9% of the pool) had a YE 2001 DSCR DSCR See: Debt-service coverage ratio below 1.0x. There were 14 loans (15%) on the master servicer watchlist. Of these, two loans were deemed a concern. A copy of the transaction's exception report was received and 37% of the pool was found to have document deficiencies. Fitch's analysis took into account the watchlisted loans of concern and the geographic concentrations in the transaction and based on this analysis upgrades were warranted for classes B, C, D. Fitch Ratings will continue to monitor this transaction, as surveillance is ongoing. |
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