Fitch Upgr DLJ/TVO Southwest Commercial Mtge P-Ts, Ser 1994-MF1.Business Editors NEW YORK--(BUSINESS WIRE)--July 6, 2001 DLJ DLJ Distributor License for Java DLJ Donaldson, Lufkin & Jenrette Inc. DLJ Drive Like Jehu (band) DLJ Defence Laboratory Jodhpur (India) DLJ Dead Letter Journal Mortgage Acceptance Corp.'s multifamily mortgage pass-through certificates/TVO Southwest, Series 1994-MF1, $47.5 million class A-1 and $14.0 million class A-2 are upgraded to `AAA' from `AA+' and `A+', respectively. In addition, the $9.0 million class B-1 is upgraded to `AA' from `BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. +' and the $9.5 million class B-2 is upgraded to `A' from `BBB'. The rating actions follow Fitch's annual review of this transaction, which closed in December 1994. The upgrades are primarily attributable to increased 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 ), lower loan-to-value (LTV LTV See: Loan-to-value ratio ) and moderate paydown of the pool balance. As of the May 2001 distribution date, the pool's certificate balance had been reduced by approximately 5.3%, to $80.0 million from $84.5 million at closing. Pacific Mutual Life Insurance, the master servicer, collected year-end (YE) 2000 financial statements for all the underlying properties. The YE 2000 overall DSCR for the pool is 1.75 times (x) versus 1.73x at YE 1999. The calculated DSCR is based on a mortgage constant of 10.09%. The LTV has declined to 48% at YE 2000 from 66% at closing. The LTV is based on a cap rate of 9.25%. Average YE 2000 occupancy remained flat at 95% from the prior year's review. Fitch will continue to monitor this transaction, as surveillance is ongoing. |
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