Fitch Ratings Upgrades NationsLink Funding Corporation Series 1999-2.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 10, 2003 NationsLink Funding Corporation 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 1999-2 are upgraded as follows: -- $44.9 million class C to 'AAA' from 'AA-'; -- $67.3 million class D to 'A+' from 'BBB+'; -- $16.8 million class E to 'A-' from 'BBB'. In addition the following classes are affirmed: -- $30.2 million class A-2 at 'AAA'; -- $232.0 million class A-3 at 'AAA'; -- $110.5 million class A-4 at 'AAA'; -- $62.2 million class A-1C at 'AAA'; -- $114.0 million class A-2C at 'AAA'; -- $56.1 million class B at 'AAA'; -- Interest-only class X at 'AAA'. Fitch does not rate classes F through K. The rating actions follow Fitch's annual review of the transaction, which closed in August 1999. The upgrades are due to loan amortization, payoffs and prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. which have resulted in increased credit support to the Fitch rated classes. ORIX Capital Markets, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the master servicer, collected year-end (YE) 2002 financials for 96% of the pool balance as of August 2003. 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 (DSCR DSCR See: Debt-service coverage ratio ) is 1.69 times (x) compared to 1.34x at issuance for the same loans. Currently, four loans (2%) are in special servicing. The largest loan (1.1%) is secured by a retail property in Durham, NC and is current. The borrower has recently leased the vacant Kmart space representing (40%) net rentable area (NRA NRA (National Rifle Association of America) organization that encourages sharpshooting and use of firearms for hunting. [Am. Pop. Culture: NCE, 1895] See : Hunting ) and the property is currently 88% occupied. The next largest specially serviced loan (0.3%) is secured by a theater in Cornelius, OR and is current. The loan transferred to the special servicer when the DSCR fell below the minimum requirement per the loan documents. The trust has agreed to accept a prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. proposal of $286,929 and the loan is expected to payoff soon. Eleven loans (2%) reported YE 2002 DSCR's below 1.00x. One of the loans (0.2%), Dollinger Central, is located in Glendale, CA and is current but on the master servicer watchlist. The property has suffered from declines in occupancy, however vacant space has been recently leased and performance is expected to improve. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion