Fitch Ratings Upgrades NSS Mortgage Securities II Corp.Business Editors CHICAGO--(BUSINESS WIRE)--April 17, 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 NSS (Novell Storage Services) A 64-bit file system introduced with NetWare 5 that can support terabyte-sized files. NSS files and standard NetWare files can be used in the same server. See NetWare 5. 1. (networking) NSS - Nodal Switching System. Mortgage Securities II Corp.'s $30 million class A commercial mortgage pay-through bonds to 'AA+' from 'AA'. In addition, Fitch upgrades the $7.5 million class B bonds to 'A+' from 'A' and $7.3 million class C bonds to 'BBB+' from 'BBB'. The rating affirmations follow Fitch's review of the transaction, which closed in September 1996. The bonds are secured by 37 cross-collateralized and crossed-defaulted mortgage loans on 35 self-storage properties and two business parks. The properties are located in Arizona (30% by allocated loan amount), California (19%), Colorado (18%), Texas (12%), Utah (11%) and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). (10%) and are managed by National Self Storage Management, Inc. (NSS). As of the April 2003 distribution date, the pool's aggregate principal balance has decreased by 17% to $44.8 million due to amortization. The pool's borrower-reported net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. adjusted for Fitch required capital expenditures for the trailing 12 months ended (TTM TTM Trailing 12 months. Often used with Earnings Per Share. ) March 31, 2003 has increased approximately 12% from origination and 2% from the TTM Dec. 31, 2002. Average occupancy for TTM Dec. 31, 2002 was 85.4% compared to 86.2% at issuance and 84.9% from the previous year. The improved performance is due to several factors including maximizing rental income, controlling expenses, increasing marketing efforts and improving the curb appeal of the facilities. The transaction's current overall Fitch stressed 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 has increased to 2.11 times (x) compared to 1.60x at issuance and 1.98x as of the TTM Dec. 31, 2002. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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