NEW YORK, Feb. 4 /PRNewswire/ -- Standard & Poor's today raised its rating
on class B of Chase Commercial Mortgage Securities Corp.'s commercial mortgage
pass-through certificates series 1998-1. At the same time, ratings are
affirmed on five other classes of the same series (see list).
The rating actions reflect increased credit support levels, geographic
diversity, and a variety of property types. Standard & Poor's calculated the
weighted average debt service coverage (DSC) for the remaining loan pool
(reporting year-end 2000 and nine months ending September 2001) to be
2.03 times (x), an increase from 1.68x at issuance. Standard & Poor's expects
that over the next year or so, the currently weak economic conditions may
cause the DSC to decline somewhat, but any such declines have already been
factored into the current rating actions. As of January 2002, there were no
delinquent loans or realized losses to the trust. In December 2001, GMAC
Commercial Mortgage Corp. (GMAC) became the successor servicer. Chase
Manhattan Bank was the previous servicer.
As of January 2002, GMAC placed four loans ($32.7 million, or 4.4% of loan
pool) on its watchlist: two retail loans due to servicing advancing on real
estate taxes, one retail loan that has an anchor tenant (Ames) in bankruptcy,
and one hotel loan due to advancing on real estate taxes and a decline in
occupancy. All four watchlist loans are current with debt service payments.
GMAC does not anticipate any imminent defaults on the watchlist loans. Of
greatest concern to GMAC is the $13.2 million watchlist loan that is secured
by Hotel Vintage Plaza in Portland, Ore. The most recent reported DSC for
nine-months ending September 2001 is 0.69x, a decrease from 1.81x at issuance.
Standard & Poor's stressed the loans with DSCs below 1.0x, and determined that
the current and stressed credit enhancement levels adequately support the
raised and affirmed ratings.
As of January 2002, the mortgage pool balance decreased to
$749.51 million with 75 loans, from $817.88 million with 78 loans at issuance.
Of the 75 remaining loans, 59 are balloon loans and 16 are fully amortizing
loans. One retail loan is scheduled to mature in February 2003, which reported
year-end 2000 DSC of 1.64x. Office, multifamily, and lodging are the three
most common property types, representing 23%, 18%, and 18% of the outstanding
pool balances, respectively. There are only three lodging loans: one is the
largest loan in the pool, which is secured by nine Embassy Suites (see detail
below); the second loan, secured by Hotel Vintage Plaza (see detail above), is
on the watchlist; and the third loan, secured by Harbor Court Hotel in San
Francisco, Calif., reported a nine-month DSC (ending September 2001) of 1.65x
and is current with debt service payments. The states exceeding a 10%
concentration are New York (19.8%), Massachusetts (11.2%), and California
(10.3%). The top 10 loans, representing 45.5% of the loan pool, reported a
weighted average debt service coverage ratio (DSCR) of 2.58x, an increase from
2.12x DSC at issuance. The largest loan represents 14.2% of the loan pool
($106.7 million), and is secured by nine Embassy Suites Hotels located in
various states. The reported nine-month DSC (ending September 2001) for this
loan was 2.55x, a slight increase from 2.40x at issuance. Property inspection
reports on the top 10 loans revealed that the properties are in excellent to
good condition.
RATINGS RAISED
Chase Commercial Mortgage Securities Corp. 1998-1
Commercial mortgage pass-thru certs
Rating
Class To From Credit support%
B AA+ AA 24.75
RATINGS AFFIRMED
Chase Commercial Mortgage Securities Corp. 1998-1
Commercial mortgage pass-thru certs
Class Rating Credit support%
A-1 AAA 29.11
A-2 AAA 29.11
C A 18.20
D BBB 12.20
E BBB- 10.56
SOURCE Standard & Poor's Ratings Services
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Angela Catoe, +1-212-438-2419, or Pramit
Sheth, +1-212-438-1470, both of Standard & Poor's
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