S&P Lwrs Rtgs on 2 Cl of DLJ Mtg Accept Ser 1997-CF1.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 20, 2003 (Standard & Poor's)--Standard & Poor's Ratings Services today lowered its rating on class B-1 of DLJ DLJ Distributor License for Java DLJ Donaldson, Lufkin & Jenrette Inc. DLJ Drive Like Jehu (band) DLJ Defence Laboratory Jodhpur (India) DLJ Dead Letter Journal Mortgage Acceptance 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 1997-CF1 and placed it on CreditWatch with negative implications. At the same time, the rating on class B-2 is lowered to 'D' from 'CCC' (see list). The lowered ratings are the result of interest shortfalls triggered by the disposition of an REO reo Noun NZ a language [Maori] lodging asset in Savannah Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. , Ga. As recently as January 2002, the appraised value An appraised value (USA) or mortgage valuation (Australia) pertains to the assessed value of real property in the opinion of a qualified appraiser or valuer. It is usually used as a pre-qualification & risk-based pricing factor related to the issuance of mortgage loans by a of the subject property was $3 million. The $3 million loan was liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. at a 100% principal loss. Interest shortfalls resulted because the proceeds from the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy were not sufficient to cover outstanding advances against the asset, which totaled $2.36 million. Both the realized loss 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. and interest shortfalls were reported on the February 2002 distribution statement. Provided future dispositions do not cause additional shortfalls, it will be several months before the class B-1 is made whole in terms of interest. The CreditWatch placement of this class will remain in effect while the certificate has outstanding shortfalls. Class B-2 may not be made whole with regard to interest for an extended time period, which is likely to be in excess of six months. This is the second time the ratings on these classes have been lowered in as many months (see Dec. 20, 2002 press release). Continued credit support erosion will occur upon the disposition of some of the remaining specially serviced assets, which have an aggregate outstanding balance of $17.8 million, or 5.2% of the pool. Appraisal reduction amounts against these assets total $9.5 million. Should the assets liquidate at values significantly lower than their appraised values, the B-1 and B-2 certificates will sustain additional shortfalls.
RATING LOWERED AND PUT ON CREDITWATCH NEGATIVE
DLJ Mortgage Acceptance Corp.
Commercial mortgage pass-thru certs series 1997-CF1
Rating
Class To From Credit Support (%)
B-1 B/Watch Neg BB+ 10.80
RATING LOWERED
DLJ Mortgage Acceptance Corp.
Commercial mortgage pass-thru certs series 1997-CF1
Rating
Class To From Credit Support (%)
B-2 D CCC 7.53
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