Fitch Ratings Upgrades NationsLink Funding Corp 1999-2 $911.1MM P-T Ctfs.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 6, 2002 NationsLink Funding Corp.'s 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 1999-2, are upgraded 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. as follows: $56.1 million class B to 'AAA' from 'AA'; $44.9 million class C to 'AA-' from 'A'; $67.3 million class D to 'BBB+' from 'BBB'; and $16.8 million class E to 'BBB' from 'BBB-'. In addition, Fitch affirms the $70.1 million class A-2, $232 million class A-3, $110.5 million class A-4, $81.5 million class A-1C, $114 million class A-2C and interest-only class X at 'AAA'. Class A-1 recently paid off and the rating has been withdrawn. Fitch does not rate classes F through K. The rating affirmations follow Fitch 's annual review of the transaction, which closed in August 1999. The upgrades are a result of additional loan amortization and prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. resulting in higher subordination levels. Overall, the transaction continues to show strong operating performance since issuance, and no realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. to date. The certificates are collateralized by 276 fixed-rate mortgage loans. Significant property type concentrations include multifamily (34%), retail (30%), industrial (12%) and office (11%). The properties are located in 31 states, with significant concentrations in CA (34%), NV (11%), FL (9%) and WA (7%). As of the November 2002 distribution date, the pool's aggregate principal balance had been reduced by 18.5% to $911.1 million from $1.12 billion at closing. The five largest loan concentrations represent 11% of the pool. Three loans (0.2%) are currently in special servicing. Of these loans, two are current, one is 30 days delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. , and no losses are expected. ORIX Capital Markets, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the master servicer, collected year-end (YE) 2001 property financial statements for 99% of the loans by principal balance. Based on borrower provided financials, the pool's 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 ) was 1.61 times (x), up from 1.55x for YE 2000 and 1.34x at issuance. Twenty-four loans (5% of the pool) were reported to be on the master servicer watchlist. Of these, 3 loans (1%) were found to be of concern. The majority of the loans were on the watchlist due to maturities within the next six months or for not reporting YE 2001 financials. Seven loans (1.5%) reported YE 2001 DSCRs below 1.00x. Fitch's analysis took into account the number of specially serviced loans, other loans of concern as well as the high concentration of California properties. Based on this analysis and the increased subordination levels, upgrades to the classes were warranted. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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