Fitch Ratings Upgrades SMSC 1995-M1 Classes B1 & B2.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 15, 2002 Structured Mortgage Securities Corporation's (SMSC SMSC Short Message Service Center SMSC Standard Microsystems Corporation (New York) SMSC Spiritual Moral Social Cultural (education) SMSC Stephenville Medical and Surgical Clinic ) mortgage trust 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-M1, are 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: $2.8 million class B-1 to 'A' from 'BBB-' and $5.6 million class B-2 to 'BB' from 'B+'. Fitch does not rate the $5.6 million class B-3 certificates. The rating actions follow Fitch's annual review of the transaction, which closed in May 1995. The 1995-M1 certificates evidence the beneficial ownership interests in a trust fund consisting of SMSC's multifamily mortgage trust pass-through certificates, series 1994-M1, class B, issued in December 1994. The 1994-M1 class A certificates and class IO certificates were exchanged for Federal National Mortgage Association Guaranteed ACES REMIC pass-through certificates and were not rated. The upgrades reflect 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 58% to $52.1 million from $123.6 million at issuance. The loans are secured by multifamily properties, located primarily in Texas (47% by balance), Michigan (19%), and New Jersey (13%). Twenty-five of the original 46 loans have paid off; none have realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. . No loans are currently delinquent, on the watchlist, or in special servicing. 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. (GMAC), the master servicer, collected year-end (YE) 2001 financial statements for 20 loans (99%). 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 ) increased to 1.58 times (x) from 1.57x as of YE 2000 and 1.30x at issuance. No loans reported YE 2001 DSCR below 1.00x. Based on the 2002 property inspections received from GMAC, 6% of the pool was in excellent condition, 6% in satisfactory condition, and the rest in good condition. Various hypothetical stress scenarios were applied to account for potentially problematic loans as well as shifts in loan concentrations. Even under these stress scenarios subordination levels were sufficient to justify the upgrades. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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