Fitch Ratings Upgrades PMAC 1996-M1.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 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 PaineWebber Mortgage Acceptance Corp. IV's multifamily mortgage pass-through certificates, series 1996-M1, as follows: --$7.0 million class D to 'AAA' from 'AA', In addition, Fitch affirms the following classes: --$2.4 million class C at 'AAA'; --$23.0 million class E at 'A'. The upgrade reflects the stable performance of the Lexford loan, the remaining loan in the transaction. As of the September 2004 distribution date, the pool's overall aggregate principal balance is $32.5 million, compared with $127.8 million at issuance. The loan is secured by 26 cross-collateralized and cross-defaulted multifamily properties located in eight states. All of the properties were inspected within the past 12 months and were found to be in good to excellent condition. Though Fitch is concerned with the 100% multifamily property type concentration and interest-only nature of the loans, the ratings reflect these pool characteristics. The most recent occupancy for the pool averaged 92%, compared with 93% at last review and 94% at issuance (the most recent occupancy as-of dates vary by property, between Dec. 31, 2003 and April 30, 2004). The master servicer, GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage Corp., provided year-end (YE) 2003 financial statements for all of the properties. The Lexford loan, which matures in 2006, reported a YE 2003 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 ) of 1.77x, compared with 1.89x at YE 2002 and 1.50x at issuance. None of the properties in the pool reported YE 2003 DSCRs below 1.00x. Six of the properties (24.1%) in the transaction are located in Florida. GMAC reports that four properties were in counties damaged by Hurricane Charley, but the damage assessment at this time is unknown. However, if damage were to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report it would be mitigated by insurance coverage and the ability of the borrower, Equity Residential, the largest publicly traded multifamily REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). (rated 'BBB+' by Fitch) to pay any premiums. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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