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Classes A-JS through H-S and classes J through NR incurred interest shortfalls for the October 2009 remittance. Of the total $1.6 million in current shortfalls, approximately $950,000 are the result of non-recoverable advances related to the Pelican Point loan, currently in special servicing. The advance recoveries are expected to continue for two additional months through December 2009 but are ultimately recoverable; class A-JS is expected to recover shortfalls in January 2010.
The Pelican Point loan was modified by the special servicer and brought current. Ongoing interest shortfalls of approximately $215,000 per month are expected as the modification included a reduction in the interest rate to 3%. After the advance recovery, interest shortfalls to junior classes will be ongoing during the loan's remaining term. Ultimate losses due to these shortfalls are expected as the modification does not require the borrower to reimburse the trust for the interest rate differential.
The trust is also incurring approximately $480,000 in interest shortfalls due to appraisal reductions and special servicing fees for other loans in the pool. A portion of these shortfalls may be recovered depending on loan workouts or sales proceeds from liquidated loans. As the classes expected to experience ongoing interest shortfalls are rated below investment-grade, Fitch is not taking rating actions at this time.
Additional information is available at www.fitchratings.com.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
SOURCE: Fitch Ratings
Fitch Ratings Sandro Scenga, +1-212-908-0278 (New York) sandro.scenga@fitchratings.com Gregg Katz, +1-312-606-2343 (Chicago) Britt Johnson, +1-312-606-2341 (Chicago)
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The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
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