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MORTGAGE CAPITAL FUNDING SERIES 1993-C1 RATED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 30 /PRNewswire/ -- Mortgage Capital Funding Inc.'s commercial mortgage pass-through cerc?ates series 1993-C1 $77.4 million class A-1, $21.0 million A-2, and interest-only classes IO-1, and IO-2 are rated 'AA' by Fitch. In addition, the issuer's $12.1 million class B certificates are rated 'A', $9.1 million class C certificates 'BBB', $10.6 million class D certificates 'BB', and $9.1 million class E certificates 'B'. The $12.1 million class F certificates are not rated.
 The ratings reflect the fact that all mortgages are current (none more than 30 days delinquent), the presence of a strong special servicer, a relatively high percentage of multifamily assets (47 percent) and relatively low percentage of office assets (12 percent), and subordination of classes B (8 percent), C (6 percent), D (7 percent), E (6 percent), and F (8 percent). In addition, liquidity is provided by servicer advances for principal and interest through liquidation of the asset or disposition of any REO property acquired. Concerns include weak loan diversity, with only 59 loans in the pool, and the top five representing approximately 25 percent of the pool by principal balance, and the pool's geographic concentration of 60 percent by principal balance in North Carolina.
 The ratings also reflect Fitch's confidence in the integrity of the transaction's legal and financial structures, as well as Citibank, N.A.'s obligation, as seller, to indemnify certificateholders for any losses caused by a breach of representations and warranties. Environmental studies were performed on all the properties and, in all but one instance, no further action was required. On one asset, a hotel representing less than 2 percent of the initial pool balance, additional investigation was recommended, but the related borrower refused to allow such investigation because of the property disruption involved. Fitch addressed this potential problem in its analysis. However, given this loan's 3.70x debt service coverage, foreclosure appears unlikely.
 The pool's 59 loans are secured by multifamily and commercial properties. All but one of the loans were acquired by Citibank, primarily from 1st Home Federal Savings & Loan Association of the Carolinas and Bluebonnet FSB. The weighted average debt service coverage ratio for loans in the pool exceeds 1.30 times. About 69 percent of the pool consists of fixed-rate loans.
 The trustee is the Bank of New York. Citibank, N.A. is the master servicer and CRICO Mortgage Co., Inc., an affiliate of CRI Inc., is the special servicer. For federal income tax purposes, an election will be made to treat the trust as a real estate mortgage investment conduit.
 -0- 9/30/93
 /CONTACT: Dean L. Britton, 212-908-0620, or Harvey M. Lederman, 212-908-0635, both of Fitch Financial Wire/


CO: Mortgage Capital Funding Inc. ST: North Carolina, New York IN: FIN SU: RTG

LD -- NY126 -- 7572 09/30/93 19:17 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
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