Fitch Upgr First Boston Mortgage Sec Corp., Series 1993-1.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 18, 2001 First Boston Mortgage Securities Corp., conduit mortgage pass-through certificates, Series 1993-1, $2.2 million class 2-B is upgraded to 'AAA' from 'AA+'. The remaining classes are affirmed as follows: $11.8 million class 1-A, $3.8 million class 2-A and interest-only classes 1-X and 2-X at 'AAA' and $1.3 million class 1-B at 'AA+'. The rating affirmations follow Fitch's annual review of this transaction, which closed in March 1993. The certificates are currently collateralized by a pool of mortgage loans secured by mortgages on 15 cooperative apartment buildings. The properties are located in 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 , with a concentration in Midtown Manhattan. The loans mature in 2002 (57%) and 2003 (43%). As of the November 2001 distribution date, the transaction's aggregate principal balance has decreased 77% to $18.9 million. There is a reserve account with a balance of $774,651. The reserve serves as additional 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 to class 2-B. All of the remaining loans are current. The Master Servicer, National Cooperative Bank The National Consumer Cooperative Bank (NCCB) was created and chartered by the National Consumer Cooperative Bank Act (92 Stat. 499, 12 U.S.C.A. 3001), enacted on August 20, 1978. The bank is directed by the act to encourage the development of new and existing cooperatives. , FSB (FrontSide Bus) See system bus. FSB - front side bus (NCB (Network Control Block) A packet structure used by the NetBIOS communications protocol. ), collected year-end 2000 operating statements for 100% of the loans remaining in the pool. Fitch reviewed the 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 ) for the properties as if they were converted to rental properties. Based on the original underwritten rental income (provided prior to closing in 1993) and year-end 2000 expenses, the weighted average DSCR for the properties remaining in the pool was stable at 5.69 times (x). Each property is more than 70% owner occupied with reserves greater than 10% of income. NCB provided Fitch with current rental rates in the respective property markets. As rents have risen since the original underwriting of these loans, the updated market information provides a basis for how these properties would perform in a refinance environment. Based on current rental rates, Fitch's year-end 2000 DSCR would be 6.51x compared to issuance 5.69x. This improvement, combined with the outstanding reserve balance and the low weighted average loan to value, 11%, were sufficient to support the upgrade on class 2-B. Fitch will monitor the performance of this transaction, as surveillance is on-going. |
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