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FUND AMERICA INVESTORS CORPORATION II $312,000,000 MORTGAGE PASS- THROUGH CERTIFICATES, SERIES 1993-C RATED BY DUFF & PHELPS

 NEW YORK, July 30 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has rated the following classes of Mortgage Pass-Through Certificates, Series 1993-C issued by Fund America Investors Corporation II:
 Class Amount Rate D&P Rating
 F-1 $217,000,000 1-Month LIBOR +2 percent AAA (Triple A)
 B $ 95,000,000 none AAA (Triple A)
 Class F-1 and Class B are entitled to monthly payments on the collateral described below less fees of the trust. The payments are allocated first to Class F-1 to pay interest on the class and then to pay down principal on the class. In the event that any Class F-1 interest is accrued but not paid on the respective payment date, such interest, together with interest on such interest, is scheduled to be paid once the principal amount of the class has been paid in full. After Class F-1 has been retired and has been paid any deferred interest, Class B will receive all subsequent cash flows from the collateral. In addition, Class B is entitled to all payments received on $85,000,000 of principal component bonds issued by the Resolution Funding Corporation (the RFCO Strips) and held by the trust. Class B certificateholders may also terminate the trust when the principal balance of the Class F-1 certificates falls below $21,700,000, in which case the Class F-1 certificateholders must be paid their outstanding principal amount but not any accrued and unpaid interest.
 The rating of the certificates reflects D&P's opinion that the Class F-1 certificateholders will receive at least $217,000,000 of payments by the Class F-1 maturity date and the Class B certificateholders will receive at least $95,000,000 of payments by the Class B maturity date. The rating does not address either the right of certificateholders to receive payments on the certificates in excess of an amount equal to the aggregate principal amount of the certificates or whether certificateholders will suffer lower than anticipated yields. In addition, the ratings do not address whether the payments on the certificates will take the form of either principal or interest nor whether Class B certificateholders will recover their initial investments.
 The certificates are secured by collateral consisting of 57 different classes of REMIC and CMO securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Association (Freddie Mac) and various private issuers using either federal agency mortgage-backed securities or pools of mortgage loans as collateral for their offerings. The securities generally consist of variations of principal only, interest only, inverse floating rate and residual interest securities, the last of which may or may not exist in bonded form. The certificates were issued pursuant to a pooling agreement between Fund America Investors Corporation and State Street Bank and Trust, as trustee.
 The analysis for the ratings primarily focused on prepayments of the mortgage pools underlying the REMIC securities and the subsequent effect on certificate cash flows.
 -0- 7/30/93
 /CONTACT: Henry W. Hayssen, 212-908-0209 or Andrew B. Jones, 212- 908-0205, both of Duff & Phelps Credit Rating Co./


CO: Fund America Investores Corporation II ST: IN: FIN SU: RTG

LG -- NY057 -- 7868 07/30/93 15:40 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
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