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 CHICAGO, Oct. 15 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to $104 million of privately placed bonds issued by RTC Mortgage Trust 1993-N3A. The bonds, placed by Merrill Lynch & Co., have been rated as follows:
 Class Amount D&P Rating Subordination
 Class 1A $18,000,000 AAA 82.7 percent
 Class 1B 22,000,000 AA 61.5 percent
 Class 2 37,000,000 BBB- 26.0 percent
 Class 3 12,000,000 BB 14.4 percent
 Class 4 15,000,000 B- --
 The rights of the Class 1A and Class 1B bonds to receive interest are pro rata among the bonds. The rights of the Class 2, Class 3, and Class 4 bonds to receive interest will be subordinate to the Class 1A and Class 1B bonds. The rights of each of the subordinate bonds to receive interest will be subordinate to the rights of each higher rated bond. Funds available for principal reduction will be distributed sequentially to the Class 1A, Class 1B, Class 2, Class 3, and Class 4 bonds. No principal amounts are due on each class of bonds until all of the bonds mature on October 15, 2003.
 The Class 1A and Class 1B bonds will bear interest at a defined spread over three-month LIBOR subject to a cap. Each of the Class 2, Class 3, and Class 4 bonds will bear interest at an initial fixed rate of 5.85 percent, 7.8 percent, and 10.5 percent with step- ups during the term to a maximum rate of 9.4 percent, 10.75 percent, and 12.5 percent, respectively. If the available funds are insufficient to pay accrued interest on all of the bonds, the deficiency will be allocated to each outstanding class in reverse numerical order. Payments on the bonds will be made quarterly, commencing Jan. 15, 1994.
 The bonds will be secured by approximately 318 non-performing and sub-performing mortgage loans, a liquidity reserve fund, and a deferred maintenance account. The initial deposit in the liquidity reserve fund will be $13,000,000 and will be maintained at no less than 12 months' interest payment on all outstanding bonds (approximately $11.3 million based on initial principal balance and highest interest rate caps/step- ups). The $7 million deferred maintenance account will be used primarily for property protection and improvement expenses.
 As of May 1, 1993, the cut-off date, the principal balance outstanding on the mortgage loans was approximately $325 million and the aggregate derived investment value (DIV) was approximately $144 million. The rated bonds represent approximately 32 percent of the principal balance of the mortgage loans and approximately 72 percent of the DIV. These non-performing and sub-performing mortgage loans are secured primarily by lodging, retail, multi-family, and office properties, located primarily in New Jersey (26 percent of unpaid principal balance), Florida (23 percent), and Maryland (12.6 percent). In analyzing the transaction, D&P inspected a statistically random sample of 60 mortgaged properties that represents approximately 55 percent of the unpaid principal balance.
 BEI Management, Inc., which received a satisfactory review by D&P, will be responsible for servicing the mortgage loans. The Servicer will have the ability, subject to certain conditions, to modify the terms of any mortgage loan in order to produce a greater recovery than likely from the liquidation of the loan.
 -0- 10/15/93
 /CONTACT: Irene P. Rundblom, 312-368-3132, or Michelle R. Rice, 312-368-3173, both of Duff & Phelps Credit Rating Co./

CO: Resolution Trust Corporation ST: Illinois IN: FIN SU: RTG

TM -- NY091 -- 3008 10/15/93 19:15 EDT
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Publication:PR Newswire
Date:Oct 15, 1993

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