NEW YORK, Feb. 12 /PRNewswire/ -- Standard & Poor's today removed its
ratings on five Kmart Corp. (Kmart) related credit lease series. The series
were redeemed in full on Friday, Feb. 8, 2002.
Each series evidenced beneficial ownership interests in the assets of a
pass-through trust, which held mortgage notes secured by properties leased to
former Kmart subsidiaries Office Max, Borders Inc., and the Sports Authority
Inc. Office Max leased the properties underlying the Mortgage Pass-Through
Certificates Series 1994A-1 and Mortgage Pass-Through Certificates Series
1994A-2. Borders Inc. leased the properties underlying the Mortgage
Pass-Through Certificates Series 1994A-3, Mortgage Pass-Through Certificates
Series 1994A-4, and Mortgage Pass-Through Certificates Series 1994A-5. The
Sports Authority, Inc. leased the properties underlying Mortgage Pass-Through
Certificates Series 1994-A-3 and Mortgage Pass-Through Certificates Series
1994-A-5.
The transactions contained note put agreements, which gave the right to
the collateral trustee (United States Trust Company of New York
(single-'A'-plus), an affiliate of U.S. Trust Corp.), under certain
circumstances, to require the former Kmart subsidiary, and in the event the
subsidiary failed to do so, Kmart ('D'), to purchase the related mortgage
notes in whole. The circumstances included certain rating declines of Kmart
Corp. ('D') and/or restructuring events at Kmart.
The payoffs are a result of the recent exercise of the note put
agreements, which resulted in the former Kmart subsidiaries purchasing the
related mortgage notes in whole resulting in the full principal payment of the
rated debt.
RATINGS WITHDRAWN
Kmart Corp. Related Credit Lease Transactions
Rating
Transaction To From
Mortgage P/T Certs Ser 1994A-1 NR CCC-/Watch Neg
Mortgage P/T Certs Ser 1994A-2 NR CCC-/Watch Neg
Mortgage P/T Certs Ser 1994A-3 NR CCC-/Watch Neg
Mortgage P/T Certs Ser 1994A-4 NR CCC-/Watch Neg
Mortgage P/T Certs Ser 1994A-5 NR CCC-/Watch Neg
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Eric Thompson, +1-212-438-2620, or Roy Chun,
+1-212-438-2430, both of Standard & Poor's
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