Fitch Upgrades 3 Classes of Mortgage Capital Funding 1997-MC1.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 -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. upgrades the long-term credit rating and maintains the Distressed Recovery (DR) rating of Mortgage Capital Funding, Inc.'s multifamily/commercial mortgage pass-through certificates, series 1997-MC1, as follows: -- $29.8 million class F to 'AA' from 'BBB-'; -- $6.6 million class G to 'BB' from 'B+'; -- $11.5 million class H to 'CCC/DR2' from 'CC/DR2'. In addition, Fitch affirms the following class: -- Interest-only class X at 'AAA'. Classes A-1 through E have paid in full. Classes J and K have been reduced to zero due to realized losses. The rating upgrades for classes F and G reflect improved 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 levels due to loan payoffs and scheduled amortization since Fitch's last rating action. As of the December 2006 distribution date, the pool's aggregate certificate balance decreased 92.7% since issuance, to $47.9 million from $658.5 million. The rating upgrade for class H is due to the resolution of two specially serviced loans in August 2006 with minimal losses. Class H remains at 'DR2' due to previously incurred realized losses. Currently, there are no delinquent or specially serviced loans. Fitch is concerned about the increasingly concentrated nature of the pool, with 13 remaining loans, all of which mature in 2007 and 2008. In addition, Fitch continues to monitor the performance of the second largest loan (11.9%) in the pool, which had a third-quarter 2006 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 ) of 0.68 times (x) and was 71% occupied as of September 2006. However, the borrower is in negotiations to lease the vacant space. Also, the year-end (YE) 2005 weighted averaged debt service coverage ratio (WADSCR WADSCR Weighted Average Debt Service Coverage Ratio ) of the remaining loans is 1.42x, increasing the likelihood of refinance/payoff. Distressed Recovery ratings are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the press release titled 'Structured Finance Distressed Recovery Ratings,' dated April 25, 2006, available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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