Fitch Ratings Upgrades NationsLink Funding Corp. Series 1996-1.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 4, 2002 NationsLink Funding Corp., 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 1996-1, have been 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: $19.4 million class C to 'AAA' from 'AA+', $17.7 million class D to 'AA' from 'A+', $14.5 million class E to 'BBB+' from 'BBB', $10.5 million class F to 'BBB-' from 'BB+', $5.6 million class G to 'BB+' from 'BB' and $9.7 million class H to 'B+' from 'B'. In addition, Fitch fitch: see polecat. affirms the following classes: $43 million class A-3, $16.1 million class B, and interest only class X at 'AAA'. The $9.3 million class UR is not rated by Fitch. Classes A-1 and A-2 have paid off and the ratings have been withdrawn. The rating actions follow Fitch's annual review of this transaction, which closed in May 1996. The upgrades reflect the increased subordination levels for all classes due to additional loan amortization and payoffs. Subordination levels for the upgraded classes have increased as follows: class C to 45% from 33%, class D to 33% from 24%, class E to 24% from 17%, class F to 17% from 12%, class G to 13% from 9%, and class H to 6% from 4%. The certificates are currently collateralized by 48 multifamily and commercial real estate loans. By outstanding balance, the pool consists of multifamily (59%), retail (25%), health care (9%), industrial (5%) and office (2%) properties. The properties are located in 25 states, with concentrations in Texas (17%), Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. (8%), Florida (7%) and Georgia (4%). As of the August 2002 distribution date, the transaction's aggregate principal balance has decreased 55% to $145.9 million from $322.6 million at issuance. CapMark Services, L.P., the master servicer, collected year-end (YE) 2001 operating statements operating statement See income statement. for 93% of the loans. 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 ) was 1.80 times (x) compared to a 1.76x as of YE 2000 and 1.50x at issuance. Six loans, comprising 9% of the pool's outstanding collateral balance, had a DSCR below 1.0x for YE 2001. Two loans, representing 5% of the pool are in special servicing, but are both current. The Parkview Manor Nursing Home located in Pikeville, KY, representing 2.35% of the pool is in special servicing because the loan matured on Aug. 8, 2002. The borrower continues to make principal and interest payments, so the loan is current. The special servicer expects the loan to payoff in full within the month of September. The second loan, University Foothills Apartments, a multifamily property located in Reno, NV, representing 2.82% of the pool, was 90+ 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. but was recently brought current and is being monitored for return to the master servicer. At this time, there are no delinquent loans in the transaction. Nineteen loans, representing 39% of the pool are on the master servicer watchlist for reasons such as upcoming maturities and vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. issues. Fitch has reviewed the watchlist and found 10 loans, 21% of the pool to be of concern, two of which are already in special servicing. Fitch has requested a copy of the exception report from JP Morgan Chase, the trustee, but has not received it yet. Fitch modeled the transaction and assumed that the ten loans of concern (21% of the pool) would default. As a result of Fitch's analysis, subordination levels remained high enough to warrant an upgrade of the ratings. |
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