MOODY'S UPGRADES FIVE CLASSES OF CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP., SERIES 2003-CK2
Approximately $945.7 Million of Structured Securities Affected
New York, October 13, 2005 -- Moody's Investors Service upgraded the ratings of five classes and
affirmed the ratings of fourteen classes of Credit Suisse First Boston
Mortgage Securities Corp., Commercial Mortgage Pass-Through
Certificates, Series 2003-CK2 as follows:
-Class A-1, $76,518,762,
Fixed, affirmed at Aaa
-Class A-2, $196,000,000,
Fixed, affirmed at Aaa
-Class A-3, $109,000,000,
Fixed, affirmed at Aaa
-Class A-4, $364,293,000,
Fixed, affirmed at Aaa
-Class A-X, Notional, affirmed at Aaa
-Class A-SP, Notional, affirmed at Aaa
-Class B, $32,118,000, Fixed,
upgraded to Aa1 from Aa2
-Class C, $12,353,000, Fixed,
upgraded to Aa2 from Aa3
-Class D, $29,647,000, Fixed,
upgraded to A1 from A2
-Class E, $12,353,000, Fixed,
upgraded to A2 from A3
-Class F, $12,353,000, WAC Cap,
upgraded to A3 from Baa1
-Class G, $19,764,000, WAC Cap,
affirmed at Baa2
-Class H, $14,824,000, WAC,
affirmed at Baa3
-Class J, $17,294,000, Fixed,
affirmed at Ba1
-Class K, $17,294,000, Fixed,
affirmed at Ba2
-Class L, $4,941,000, Fixed,
affirmed at Ba3
-Class N, $6,176,000, Fixed,
affirmed at B2
-Class O, $4,941,000, Fixed,
affirmed at B3
-Class GLC, $3,491,570, Fixed,
affirmed at Baa3
As of the September 16, 2005 distribution date, the transaction's
aggregate balance has decreased by approximately 2.8% to
$978.9 million from $1.0 billion at securitization.
The Certificates are collateralized by 101 mortgage loans ranging in size
from less than 1.0% to 8.8% of the pool with
the top 10 loans representing 47.7% of the pool.
The pool consists of two shadow rated loans, representing 12.4%
of the pool, and a conduit component, representing 87.6%
of the pool. Three loans, representing 2.5%
of the pool, have defeased and are collateralized by U.S.
Government securities. The Sully Place Loan (3.6%)
is in the process of being defeased.
There have been no realized losses to the pool to date. Only one
loan, representing less than 1.0% of the pool,
is in special servicing. Moody's has estimated a loss of
approximately $1.0 million from this specially serviced
loan. Eight loans, representing 3.8% of the
pool, are on the master servicer's watchlist.
Moody's was provided with full year 2004 operating results for 99.0%
of the performing loans. Moody's loan to value ratio ("LTV")
for the conduit component is 92.7%, compared to 94.0%
at securitization. The upgrade of Classes B, C, D,
E and F is primarily due to stable pool performance, increased credit
support and defeased loans.
The largest shadow rated loan is the Great Lakes Crossing Loan ($84.4
million - 8.8%), which represents a 60.0%
participation interest in a $145.8 million first mortgage
loan. The loan is secured by the borrower's interest in a
1.4 million square foot value oriented shopping center located
approximately 30 miles north of Detroit in Auburn Hills, Michigan.
The center is also encumbered by a B Note which is the security for non-pooled
Class GLC. The collateral securing the loan consists of 1.14
million square feet of anchor and in-line space. The center
is anchored by Burlington Coat Factory, Sportsmart, Bed,
Bath & Beyond, Marshalls and TJ Maxx. The center is 88.9%
occupied, compared to 91.1% at securitization.
The borrower is an affiliate of Taubman Centers, Inc. (Moody's
preferred stock rating B1; stable outlook), a publicly traded
REIT. Moody's current shadow rating is Baa2, the same as
at securitization.
The second shadow rated loan is the Sully Place Loan ($34.6
million - 3.6%), which is secured by a 533,000
square foot anchored retail center located approximately 20 miles west
of Washington, D.C. in Chantilly, Virginia.
The center is anchored by Lowe's Home Improvements (25.6%
GLA; lease expiration June 2023; Moody's senior unsecured
rating A2; positive outlook) and Kmart (19.6% GLA;
lease expiration September 2011). The loan is currently in the
process of being defeased.
The top three conduit loans represent 17.7% of the pool.
The largest conduit loan is the Ritz-Carlton Key Biscayne Loan
($63.5 million - 6.6%), which
represents the senior component of a $78.2 million first
mortgage loan secured by a 302-room luxury hotel located in Key
Biscayne, Florida. The property is also encumbered by a B
Note, which is security for non-pooled Class RCKB.
Occupancy and RevPAR for the trailing 12 month period ending July 2005
are 69.6% and $231.00, compared to 69.7%
and $183.00 at securitization. Moody's LTV
is 77.5%, compared to 86.4% at securitization.
The second largest conduit loan is the Museum Square Loan ($55.1
million - 5.7%), which is secured by a 522,000
square foot office building located on Wilshire Boulevard in downtown
Los Angeles, California. The property is 87.0%
occupied, essentially the same as at securitization. The
largest tenants are the Screen Actor's Guild (17.0%
NRA; lease expiration July 2014), American Federation of Television
and Radio Artists (7.8%; lease expiration January 2007)
and Virgin Entertainment (7.3%; lease expiration April
2010). Performance has been slightly impacted by increased operating
expenses. Moody's LTV is 93.1%, compared
to 92.1% at securitization.
The third largest conduit loan is the Crescent at Carlye Loan ($52.2
million - 5.4%), which is secured by a 212,900
square foot office building located in Alexandria, Virginia.
The property is 100.0% leased, the same as at securitization.
The anchor tenant is the law firm Oblon, Spivak, McClelland
& Neustadt (97.0% NRA; lease expiration December
2017). The loan has a five-year term and is interest only.
Moody's LTV is 97.2%, the same as at securitization.
The pool collateral is a mix of office (39.3%), retail
(33.3%), multifamily (9.6%), lodging
(8.0%), industrial and self storage (4.5%),
mixed use (2.8%) and U.S. Government securities
(2.5%). The collateral properties are located in
31 states and Washington, D.C. The top five state
concentrations are California (20.0%), Michigan (14.6%),
Virginia (13.3%), Florida (10.0%) and
Georgia (5.9%). All of the loans are fixed rate.
New York
Tad Philipp
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Sandra Ruffin
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653