S&P Lwrs Rtgs to 'D' on 2 Kmart-Rel Credit Lease Dls.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 21, 2003 (Standard & Poor's)--Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today lowered its ratings on two Kmart Corp. (Kmart) related credit lease transactions to 'D' from 'C' (see list). The lowered ratings follow the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of 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. to certificate holders following the disposition of properties formerly leased to Kmart. DR Structured Finance Corp. 1993 K-1 experienced a 66% loss severity on a $4.7 million loan secured by a property formerly tenanted by a Kmart in Pascagoula, Miss. The store was closed after Kmart rejected its lease while in bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . The loan became delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. after the last lease payment was received in June 2002. DR Structured Finance Corp. 1994 K-1 experienced a 53% loss severity on a $5.8 million loan secured by a property formerly tenanted by Kmart in Palm Coast, Fla. The loan became delinquent in July 2002. Kmart rejected its lease while in bankruptcy in February 2002.
RATINGS LOWERED
DR Structured Finance Corp. 1993 K-1
Rating
Class To From
A-1, A-2 D C
DR Structured Finance Corp. 1994 K-1
Rating
Class To From
A-1, A-2, A-3 D C
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