Printer Friendly

RESOLUTION TRUST 1991-M6 CLASS A PASS-THROUGHS 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --

 RESOLUTION TRUST 1991-M6 CLASS A PASS-THROUGHS 'AA+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 23 /PRNewswire/ -- Resolution Trust Corp.'s $513.5 million Series 1991-M6 Class A-1, A-2 and A-3 Certificates are rated 'AA+' by Fitch. The $88.6 million Class B-1 and B-2 Certificates are rated 'A' and the $49.4 million Class B-3 and B-4 Certificates are rated 'BBB+'. While the ratings reflect a number of pool characteristics including quality of the collateral, loan diversity and the performing nature of the loans, they are based primarily on the credit enhancement provided by the reserve of approximately 25 percent of the principal balance for the benefit of all classes and the subordination of Classes B-3 and B-4 (7.6 percent) as well as Classes B-1 and B-2 (13.6 percent).
 The rating also reflects Fitch's confidence in the integrity of the legal and financial structures as well as the RTC's indemnity to certificateholders for any losses caused by a breach of the sellers' representations and warranties. Also reflected in the rating is the RTC's obligation to repurchase delinquent loans associated with properties where hazardous materials are present.
 The seven certificate classes are collateralized by seven separate loan groups. These are segmented on the basis on interest rate formulas. As examples, Class A-1 is backed by loans tied to the Eleventh District Cost of Funds while Class A-3 loans are tied to the U.S. Treasury Index. As collateral associated with the junior classes may be used to support senior class certificates and as collateral tied to one index may be used to support certificates tied to another index, Fitch has allowed for the possibility of basis risk in its required subordination levels.
 The weighted average debt service coverage ratio on the 61 percent of the loans for which recent operating data is available is 1.05 times. Because of this relatively low coverage, one can expect a high default rate in a recessionary environment. This factor weighed heavily in the analysis.
 The mortgage pool consists primarily of adjustable rate balloon loans secured by first liens on average to above-average quality multifamily residential properties. Approximately 75 percent of the collateral properties are located in California.
 The collateral has been sold and assigned to the trust, which issued the certificates pursuant to the pooling and servicing agreement dated as of Dec. 1, 1991. GE Capital Asset Management, a wholly-owned subsidiary of General Electric Corp., will act as servicer for the pool. A REMIC election will be made for federal income tax purposes.
 -0- 12/23/91
 /CONTACT: Ron Wechsler, 212-908-0532, or Janet Price Forst, 212-908-0527/ CO: Resolution Trust Corp. ST: District of Columbia IN: FIN SU: RTG


KD -- NY064 -- 4906 12/23/91 15:06 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 23, 1991
Words:456
Previous Article:'GODFATHER' SENTENCED TO PRISON
Next Article:ALLIANCE IMAGING, RESPONDING TO STOCK ACTIVITY, ANNOUNCES EARNINGS EXPECTATIONS


Related Articles
MARINE MIDLAND BANK MORTGAGE PASS-THROUGHS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
RESOLUTION TRUST SERIES 1991-14 PASS-THROUGHS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
RESOLUTION TRUST SERIES 1991-16 RATED 'AA'/'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
RESOLUTION TRUST 1991-M7 CLASS A-1 PASS-THROUGHS 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
RESOLUTION TRUST CORP. SERIES 1991-17 RATED 'AAA'/'AA' BY FITCH -- FITCH FINANCIAL WIRE --
MARINE MIDLAND SERIES 1992-1 CLASS A MORTGAGE PASS-THROUGHS 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
RESOLUTION TRUST 1992-M3 CLASS A PASS-THROUGHS 'AA+' BY FITCH --FITCH FINANCIAL WIRE (FFW)--
RESOLUTION TRUST 1992-C4 CLASS A PASS-THROUGHS 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
FITCH AFFIRMS RESOLUTION TRUST CORP. SERIES 1991-9 RATINGS -- FITCH FINANCIAL WIRE --
FITCH AFFIRMS RTC SERIES 1992-6 'AAA' CLASS A, 'AA' CLASS B -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters