Fitch Upgr Prudential Securities 1995-MCF2 $146MM P-T Ctfs.Business Editors NEW YORK--(BUSINESS WIRE)--July 25, 2001 Prudential Securities Secured Financing Corp.'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 1995-MCF2, are upgraded by Fitch as follows: $8.9 million class D to `AAA' from `AA-`, $15.6 million class E to `A+' 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. +', $5.6 million class F to `BBB+' from `BBB-` and $12.2 million class G from `BB+' from `BB-`. In addition Fitch also affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the rating on the $63.8 million senior A classes at `AAA', $149.2 million interest only class A-EC at `AAA', and $11.1 million class H at `B-`. Fitch does not rate the $6.7 million class J-1 or the $6.7 million class J-2. The upgrades and affirmations follow Fitch's annual review of the transaction, which closed in December 1995. The upgrades and affirmations are the result of increased subordination levels due to prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. and amortization of the underlying collateral and stable performance since Fitch's last review in August 2000. The certificates are currently collateralized by 61 retail, multifamily, office, industrial, and health care loans with an outstanding principal balance of $146.1 million, a reduction of 34%. At issuance the certificates were collateralized by 84 loans with an outstanding loan balance of $222.3 million. The current pool has significant property concentrations of retail (52%), multifamily (19%), office (10%), health care (9%), and industrial (7%) property types. The underlying properties are also well diversified geographically, currently located in 29 states with significant concentrations in California (20%), Texas (16%), Massachusetts (12%), 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 (8%), and Tennessee (4%). Midland as master servicer, collected financial statements for 48 loans or 68% of the outstanding pool balance. As of year-end 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 loans that provided financial statements in the pool is 1.66 times (x), up from 1.30x at issuance. Fitch reviewed the mortgage document exception report, and after review twenty-nine documents were found missing with the trustee having no information on those items. Fitch did have concern with eight properties representing 12.67% of the outstanding pool balance. There are currently two REO reo Noun NZ a language [Maori] loans, one is a healthcare facility in Tennessee ($5.9 million), and the other is a multifamily community in Kentucky ($2.5 million). The remaining six loans remain a concern due to delinquencies and deteriorating performance. Fitch will continue to monitor these eight loans to determine if they will affect credit ratings in the future. Despite the concerns in the pool, Fitch found the stable performance together with the increases in subordination sufficient to upgrade and affirm the certificates. |
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