Fitch Upgrades $187MM CSFB 1997-SPICE Certificates.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 4, 2000 Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. Mortgage Securities Corp. 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 1997-SPICE are upgraded as follows: the $31.7 million class B to `AAA' from `AA+', the $28.2 million class C to `AA' from `A+', the $24.7 million class D to `A-' from `BBB', the $8.8 million class E to `BBB' from `BBB-', the $18.3 million class F to `BB+' from `BB', the $13.4 million class G to `B+' from `B' and the $10.6 million class H to `B' from `B-'. The $26.7 million class A and the interest-only class AX certificates are 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. at `AAA'. Fitch does not rate the $24.7 million class I and interest-only class J certificates. The rating actions follow Fitch's annual review of the transaction, which closed in December 1997. The upgrades are primarily attributable to significant increases in subordination levels due to amortization, prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. and matured loans. A total of 40 loans have paid off since origination, with 10 paying off since last year's annual review. As of the July 2000 distribution date, the pool's aggregate collateral balance has been reduced by approximately 47%, to $187.1 million from $352.3 million at closing. The certificates are collateralized by 49 mortgage loans consisting of multifamily (42.5%), retail (25.0%), and office (13.7%) properties. The properties are located in 14 different states and Washington, D.C., with significant concentrations in California (22.5%), New Jersey (18.4%), Illinois (15.8%) and Pennsylvania (11.3%). There have been three loans with 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. . The losses totaling $1.7 million have been absorbed by the over-collateralization and therefore no losses have been realized by the certificate-holders. Currently, there are four specially serviced loans (16% of the pool) which includes one loan 60-89 days delinquent (0.4% of the pool). Midland Loan Services Inc., the master servicer, collected year-end (YE) 1999 financial statements for 31 loans, or 67.6% of the pool balance. Based on the information provided, the YE 1999 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 ) is 1.57 times (x), which has increased from 1.50x at YE 1998 and 1.23x at closing. Four loans (4.1% of the pool) have a 1999 DSCR below 1.00x. Fitch will continue to monitor this transaction, as surveillance is ongoing. Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered 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 and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
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