Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
12 May 2010
Approximately $94.0 million of Structured Securities Affected
New York, May 12, 2010 -- Moody's Investors Service (Moody's) upgraded the rating of two classes,
affirmed three classes and downgraded two classes of Heller Financial
Commercial Mortgage Asset Corp., Mortgage Pass-Through
Certificates, Series 1999 PH-1. The upgrades are due
to increased credit subordination due to amortization and loan payoffs.
The pool balance has decreased by 67% since Moody's last review.
The downgrades are due to higher expected losses for the pool resulting
from realized and anticipated losses from specially serviced loans and
concerns about loans approaching maturity in an adverse environment.
Twelve loans, representing 57% of the pool, have or
will mature within the next seven months or have passed their respective
anticipated repayment dates (ARD). All of these loans are either
on the servicer's watchlist or are in special servicing.
The affirmations are due to key rating parameters, including Moody's
loan to value (LTV) ratio, Moody's stressed DSCR and the Herfindahl
Index (Herf) remaining within acceptable ranges. Although loan
concentration, which is measured by Herf, has declined significantly
since securitization, it is similar to last review. The rating
action is the result of Moody's on-going surveillance of
commercial mortgage backed securities (CMBS) transactions.
As of the April 15, 2010 distribution date, the transaction's
aggregate Certificate balance has decreased by approximately 84%
to $160.4 million from $1.0 billion at securitization.
The Certificates are collateralized by 22 mortgage loans ranging in size
from less than 1% to 21% of the pool, with the top
ten non-defeased loans representing 85% of the pool.
The pool includes one loan with an investment grade underlying rating,
representing 6% of the pool. Four loans, representing
8% of the pool, have defeased and are collateralized by U.S.
Eight loans, representing 35% of the current pool balance,
are currently on the master servicer's watchlist. The watchlist
includes loans which meet certain portfolio review guidelines established
as part of the CRE Finance Council (CREFC; formerly Commercial Mortgage
Securities Association) monthly reporting package. As part of our
ongoing monitoring of a transaction, Moody's reviews the watchlist
to assess which loans have material issues that could impact performance.
Nine loans have been liquidated since securitization, resulting
in a $16.9 million loss (47% overall loss severity).
Six loans, representing 27% of the pool, are currently
in special servicing. The largest specially serviced loan is the
Somerset Grove II Loan ($33.2 million -- 20.7%
of the pool), which is secured by a 450,000 square foot office
building located in Somerset, New Jersey. At securitization
the property was 100% leased to AT&T Corp. (AT&T).
AT&T vacated in 2008 but continued to pay rent until its April 2009
lease expiration. The loan was transferred to special servicing
in January 2009 for imminent default and matured in May 2009. The
loan is currently real estate owned (REO).
The remaining five specially serviced loans are secured by multifamily
and manufactured housing properties. Moody's has estimated a $26.5
million aggregate loss for the specially serviced loans (61% expected
loss on average).
Moody's has assumed a high default probability for four loans,
representing approximately 17% of the pool. These loans
mature within the next 12 months and have a Moody's stressed DSCR
less than 1.0X or have significant performance problems.
Moody's has estimated a $7.9 million aggregate loss
on these loans (29% weighted average expected loss based on an
overall 63% default probability).
Moody's was provided with partial and year-end 2009 and full-year
2008 operating statements for 65% and 89%, respectively,
of the pool. Moody's weighted average LTV for the conduit pool,
excluding specially serviced and troubled loans, is 87% compared
to 89% at Moody's prior review.
Excluding specially serviced and troubled loans, Moody's actual
and stressed DSCRs are 1.13X and 1.40X, respectively,
compared to 1.14X and 1.43X at last review. Moody's
actual DSCR is based on Moody's net cash flow (NCF) and the loan's
actual debt service. Moody's stressed DSCR is based on Moody's
NCF and a 9.25% stressed rate applied to the loan balance.
Moody's uses a variation of Herf to measure diversity of loan size,
where a higher number represents greater diversity. Loan concentration
has an important bearing on potential rating volatility, including
the risk of multiple-notch downgrades under adverse circumstances.
The credit neutral Herf score is 40. The pool has a Herf score
of 8, essentially the same as last review.
The loan with an underlying rating is the Station Plaza Office Complex
Loan ($10.0 million - 5.3% of the pool),
which is secured by a 320,500 square foot office building located
in Trenton, New Jersey. The property has been 100%
leased since securitization, with 87% of the space leased
to several New Jersey State agencies through October 2017. The
loan, which matures in August 2013, fully amortizes over its
15-year term and has amortized by approximately 19% since
last review. Moody's current underlying rating and stressed DSCR
are Aaa and 3.84X, respectively, compared to Aaa and
3.07X at last review.
The top three conduit loans represent 36% of the pool. The
largest conduit loan is the Barefoot Landing Loan ($29.8
million -- 18.6% of the pool), which is secured
by a 244,000 square foot entertainment/retail center located in
Myrtle Beach, South Carolina. The property was 95%
leased as of December 2009 compared to 100% at last review.
The property's financial performance declined since last review
due to lower rental revenues and increased expenses. The decline
in performance has been partially offset by principal amortization.
The loan has amortized 4% since last review. Moody's
LTV and stressed DSCR are 95% and 1.25X, respectively,
compared to 91% and 1.31X at last review.
The second largest conduit loan is the Springfield -- Prescott &
IDOT Loan ($17.5 million -- 10.9%),
which is secured by a 248,500 square foot office complex located
in Springfield, Illinois. The complex was 100% leased
as of April 2010, the same as last review. The largest tenant
is the Illinois Department of Public Aid (73% of net rentable area
(NRA); lease expiration 6/2014). The loan is on the master
servicer's watchlist because it passed its January 2009 ARD.
Moody's LTV and stressed DSCR are 97% and 1.31X,
respectively, compared to 98% and 1.27X at last review.
The third largest conduit loan is the Springfield -- Bressmer-Mendenhall
Loan ($10.0 million -- 6.2% of the pool),
which is secured by a 157,620 square foot office complex located
in Springfield, Illinois. The complex currently 100%
vacant after formerly being 100% leased to two state agencies.
Due to the vacancy and the soft Springfield office market, Moody's
is projecting a high probability of default on the loan. The loan
is on the master servicer's watchlist. Moody's LTV
and stressed DSCR are 200% and 0.59X, respectively,
compared to 93% and 1.26X at last review.
Moody's rating action is as follows:
-Class X, Notional, affirmed at Aaa; previously
assigned at Aaa on 5/27/1999
-Class D, $3,104,816, affirmed at
Aaa; previously upgraded to Aaa from Aa2 on 8/2/2006
-Class E, $12,622,000, affirmed
at Aaa; previously upgraded to Aaa from Aa2 on 10/10/2006
-Class F, $37,865,000, upgraded
to Aa1 from Aa3; previously upgraded to Aa3 from A1 on 5/21/2009
-Class G, $17,670,000, upgraded
to Aa3 from A2; previously upgraded to A2 from A3 on 5/21/2009
-Class L, $15,146,000, downgraded
to C from Ca; previously downgraded to Ca from B3 on 5/21/2009
-Class M, $7,573,000, downgraded
to C from Ca; previously downgraded to Ca from Caa2 on 5/21/2009
Moody's monitors transactions on a monthly basis through two sets of quantitative
tools -- MOST® (Moody's Surveillance Trends) and CMM
(Commercial Mortgage Metrics) on Trepp -- and on a periodic
basis through a comprehensive review. Moody's prior full review
is summarized in a press release dated May 21, 2009.
The principal methodologies used in rating and monitoring this transaction
are "CMBS: Moody's Approach to Rating Fusion Transactions"
published on April 19, 2005 and "CMBS: Moody's
Approach to Rating Large Loan/Single Borrower Transactions" published
on July 7, 2000. Both methodologies are available on www.moodys.com
in the Rating Methodologies sub-directory under the Research &
Ratings tab. Other methodologies and factors that may have been
considered in the process of rating this issuer can also be found in the
Rating Methodologies sub-directory on Moody's website. In
addition, Moody's publishes a weekly summary of structured finance
credit, ratings and methodologies, available to all registered
users of our website, at www.moodys.com/SFQuickCheck.
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
Moody's Upgrades Two, Affirms Three and Downgrades Two CMBS Classes of HFCMC 1999-PH-1
Michael M. Gerdes
Senior Vice President
Structured Finance Group
Moody's Investors Service
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.