Fitch Ratings Upgrades PMAC Series 1996-M1.Business Editors NEW YORK--(BUSINESS WIRE)--June 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 PaineWebber Mortgage Acceptance Corp. IV's (PMAC PMAC Purchasing Management Association of Canada PMAC Pharmaceutical Manufacturers Association of Canada PMAC Performance Modeling and Characterization PMAC Permanent-Magnet Alternating Current (electric motor) ) multifamily 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-M1 as follows: $2.4 million class C to 'AAA' from 'A', $7 million class D to 'AA' from 'BBB' and $23 million class E to 'A' from 'BBB-'. In addition, Fitch affirms the interest-only class A-XP at 'AAA'. The ratings on classes A-2 and B have been withdrawn as those classes were paid in full since Fitch's last review in October 2002. The upgrades reflect the reduction in the certificate balance since closing and the improved performance of the remaining loan in the transaction. Since the 2002 review, the pool has paid down an additional 35% due to the pay-off at maturity of the Meridian/NHP-A loan. As of the June 2003 distribution date, the pool's overall aggregate principal balance has been reduced by 75% to $32.5 million from $127.8 million at issuance. Of the deal's original three fixed-rate and interest-only loans, only the Lexford loan remains, secured by 26 multifamily properties. The properties are cross-collateralized and cross-defaulted through second priority liens and lockbox Lockbox A collection and processing service provided to firms by banks, which collect payments from a dedicated postal box to which the firm directs its customers to send payment to. arrangements. 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 95%, compared to 93% at last review and 94% at issuance (the most recent occupancy as-of dates vary by property, between Dec. 31, 2002 and May 5, 2003). 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) 2002 financial statements for all of the properties. The Lexford loan, which matures in 2006, reported a 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 ) of 1.89x compared to 1.81x at YE 2001 and 1.50x at issuance. None of the properties in the pool reported YE 2002 DSCRs below 1.00x. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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