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S&P Affirms Mission Valley Finance's `A' Note Rating.

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire--

July 2, 1999--Standard & Poor's today affirmed its single-'A' rating on Mission Valley Finance Corp.'s $75 million class A-1 and class A-2 commercial mortgage notes.

The rating affirmations reflect a slight improvement in operating performance since the initial underwriting by Standard & Poor's of the collateral: a first mortgage lien on Westfield Shopping Town's Mission Valley Center and Mission Valley West, and a $15 million letter of credit.

The operating increase is primarily attributable to higher percentage rentals from the mall stores. Mission Valley West, an adjacent retail center, is currently nearing the completion of its development phase and is leasing up according to schedule. A direct-pay letter of credit has been available during the center's development to mitigate the construction and leasing risks associated with the project. A well-located property, it continues to benefit from its strong market share and management by Westfield America, a national REIT operator.

The borrower's net operating income has been adjusted for tenant improvements, capital expenditures, leasing commissions, and a stabilized vacancy allowance to arrive at a Standard & Poor's calculated net cash flow. Using a capitalization rate of 9.10%, the loan-to-value ratio is 56.8% and debt service coverage of 1.68 times (x) based on an assumed refinance rate of 9.50%. These levels have improved marginally since the initial underwriting, when loan-to-value ratio was 57.3% and debt service coverage was 1.67x, Standard & Poor's said.--CreditWire
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 2, 1999
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