Fitch Upgrades TIAA Real Estate CDO 2003-1.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 has upgraded five classes and affirmed two classes of the notes issued by TIAA TIAA Teachers Insurance and Annuity Association TIAA Travel Industry Association of America TIAA This Is An Acronym TIAA Texas Insurance Advisory Association (statistical reporting agency in Texas) TIAA Total Inactive Aircraft Authorization Real Estate CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the 2003-1 Ltd./TIAA Real Estate CDO 2003-1 Corp. (TIAA Real Estate CDO 2003-1). The following rating actions are effective immediately: --$190,901,751 class A-1 MM notes affirmed at 'AAA'/'F1+'; --$10,000,000 class B-1 notes upgraded to 'AAA' from 'AA+'; --$2,000,000 class B-2 notes upgraded to 'AAA' from 'AA+'; --$16,000,000 class C-1 notes upgraded to 'AA-' from 'A'; --$14,000,000 class C-2 notes upgraded to 'AA-' from 'A'; --$13,500,000 class D notes upgraded to 'BBB+' from 'BBB'; --$12,000,000 class E notes affirmed at 'BB'. TIAA Real Estate CDO 2003-1 is a collateralized debt obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, (CDO), which closed November 6, 2003, supported by a static pool of commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. (55%), senior unsecured real estate investment trust securities (44%), and collateralized debt obligations (1%). Teachers Advisors, Inc., a subsidiary of TIAA, serves as the collateral manager for the CDO. The upgrades are driven primarily by the improved credit quality, seasoning of the portfolio, and delevering of the capital structure. The CDO has paid down $20.6 million since issuance, representing 6.9% of the collateral. Since Fitch's last review, 30.79% of the underlying portfolio has been upgraded an average of 1.96 notches, with only one underlying security (0.98% of the portfolio) downgraded 2.00 notches. The weighted average rating factor (WARF WARF Wisconsin Alumni Research Foundation WARF Wide Aperture Research Facility WARF Wartime Active Replacement Factors WARF weighted-average risk factor WARF Wartime Attrition and Replacement Factors WARF Whylie Animal Rescue Foundation ) has improved, but remains in the 'BBB/BBB-' category. All overcollateralization (OC) and interest coverage (IC) ratios have remained stable since inception. There are currently no defaulted assets in the portfolio. The CMBS CMBS See: Commercial Mortgage Backed Securities assets in the collateral pool ranges from the 1997 vintage to the 2003 vintage with none being first loss classes. Due to defeasance and amortization, Fitch believes these CMBS vintages are a positive factor in this transaction. Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities. The ratings of the class A-1MM notes address the likelihood that investors will receive timely payment of interest and ultimate repayment of principal. The ratings on the class B-1, B-2, C-1, C-2, D, and E notes address the ultimate payment of interest and ultimate repayment of principal. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the 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. web site at www.fitchratings.com. (For more information on the Fitch VECTOR model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated October 4, 2006, also available 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.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto. |
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