Fitch Ratings Upgrades 5 Classes Of FDIC REMIC Trust 1996-C1 To 'AAA'

Business Wire,  August 21, 2002  

Tags: FDIC

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Business Editors

CHICAGO--(BUSINESS WIRE)--Aug. 21, 2002

FDIC REMIC Trust commercial mortgage pass-through certificates, series 1996-C1 ratings are upgraded by Fitch Ratings as follows: $31.7 million class I-B to 'AAA' from 'AA', $26.4 million class I-C to 'AAA' from 'A', $42.3 million class I-D to 'AAA' from 'BBB', $14.5 million class II-B to 'AAA' from 'AA' and $11.3 million class II-C upgraded to 'AAA' from 'A-'. In addition, Fitch affirms the $21.7 million class I-A and $8.7 million class II-A at 'AAA'. The upgrades and affirmations follow Fitch's annual review of this transaction, which closed in December 1996.

As of the July 2002 distribution report, the aggregate collateral balance has been reduced 78% to $156.8 million from $716.5 million at issuance. Of the 1,850 loans in the pool at issuance, only 544 remain. Sub-Pool I is currently secured by 363 fixed-rate loans while Sub-Pool II is secured by 181 adjustable-rate mortgage loans. The deal has geographic concentrations of loans in California (37.4%) and Massachusetts (18.7%). By property type, the deal has concentrations in retail (30.6%) and multifamily (17.8%).

The entire pool has had a low delinquency, foreclosure and REO (DFR) rate since issuance. Currently DFR's only represent 3% of the entire pool, of which 2.4% are from Sub-Pool I and 0.6% are from Sub-Pool II.

Additional credit support is provided to each Sub-Pool of loans by the Bank Insurance Fund limited guaranty. The current balances of the limited guaranty for Sub-Pool I and Sub-Pool II are $158.1 million and $62.8 million respectively. The additional credit support provided by the guaranty warrants the rating actions as the deal has paid down significantly from issuance and the guaranty as a proportion of the certificates has grown. Fitch will continue to monitor this transaction, as surveillance is ongoing.

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