Fitch Ratings Upgrades SASCO, Series 1995-C4.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 18, 2002 Structured Asset Securities Corp.'s multiclass 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 1995-C4, $11.7 million class F is upgraded to 'AAA' from 'A+' 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. . In addition, Fitch affirms the $1.6 million class A-2 and the $8.7 million class E at 'AAA'. Fitch does not rate the $11.7 million class G and the $8.8 million class H certificates. The rating actions follow Fitch's annual review of the transaction, which closed in November 1995. The upgrade reflects significant increases in subordination levels due to amortization and loan payoffs. As of the October 2002 distribution date, the pool's collateral balance has been reduced by 81%, to $43.9 million from $233.3 million at closing. Credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing is provided to the rated certificates by $20.5 million in non-rated classes. Of the original 106 loans in the pool, 18 are outstanding. The pool is heavily concentrated by property type (retail 45.9%, office 28.9%, and multifamily 11.5%) and by geographic location (Maryland 26.2%, Connecticut 22.3%, and South Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). 11.0%). 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., the master servicer, provided year-end (YE) 2001 financials for eleven of the loans in the pool (82.1%). The pool's 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 ) is 1.58 times (x), compared to 1.58x as of YE 2000 and 1.39x at closing. No loans reported DSCRs below 1.00x. Currently, three loans (6.29%) are being specially serviced for having passed their respective maturity dates. However, refinancing options are being explored for all three loans, none of which are expected to result in losses to the Trust. To date, realized losses total $3.1 million from the disposition of four assets between December 1998 and May 2000. Various hypothetical stress scenarios were applied to account for potentially problematic loans, including those that did not report 2001 financials. Even under these stress scenarios, subordination levels were sufficient to upgrade class F. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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