Fitch Upgr Morgan Stanley Capital's 1996-WF1 $512MM P-T Ctfs.Business Editors NEW YORK--(BUSINESS WIRE)--July 11, 2001 Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Capital Inc.'s commercial 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-WF1, are upgraded by Fitch as follows: $36.3 million class B to `AA+' from `AA', $30.3 million class C to `A+' from `A', $33.3 million class D to `BBB BBBA 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. +' from `BBB', and $9.1 million class E to `BBB' from `BBB-'. In addition Fitch affirmed the following classes: $197.2 million class A-2, $145.3 million class A-3 and interest only class X at `AAA', $21.2 million class F at `BB', and the $21.2 million class G at `B'. Fitch does not rate the $18.2 million class H. The upgrades and affirmations follow Fitch's annual review of the transaction, which closed in March of 1996. The certificates are collateralized by 131 fixed-rate loans. Significant property type concentrations include retail (53%), industrial (21%), multifamily (9%), and office (8%). The properties are located in 24 states with significant concentrations in California (34%), Texas (10%), Colorado (5%) and Nevada (5%). As of the June 2001 distribution date, the pool's aggregate balance has been reduced by 15.4% to $512 million from $605.4 million at closing. Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. as master servicer, collected financial statements for 91% of the properties remaining in the pool. As of yearend 2000, the 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 ) for the pool is 1.66 times (x), compared to 1.68x in 1999 and 1.46x at issuance. Fitch reviewed the mortgage document exception report dated July 10, 2001. After review, nine documents were found missing with the trustee having no information on those items. Fitch did have concerns with three properties representing 1.7% of the outstanding pool balance. Two of the three properties are in special servicing. The first property, a retail center in Jackson, Miss., is in special servicing due to borrower bankruptcy. Despite the bankruptcy the loan remains current. The second property in special servicing, a hotel in Sweetwater, Texas is currently real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most . The remaining property, a retail property in Oroville, Calif., is current, however has seen a significant decrease in occupancy over the past year. Despite the concerns in this pool, Fitch found the increase in performance together with the increases in subordination sufficient to upgrade and affirm the certificates. |
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