Fitch Ratings upgrades Mortgage Capital Funding, Inc.'s (MCF) commercial mortgage pass-through certificates, series 1998-MC2, as follows:
--$37.9 million class E to 'AAA' from 'AA';
--$12.6 million class F to 'AAA' from 'A';
--$25.2 million class G to 'A+' from 'BBB-';
--$7.6 million class H to 'BBB-' from 'BB+'.
Additionally, Fitch affirms the following classes:
--Interest-only class X at 'AAA';
--$12.6 million class C at 'AAA';
--$60.6 million class D at 'AAA';
--$15.1 million class J at 'B+';
--$7.6 million class K at 'CCC'.
Fitch does not rate the $2.4 million class L certificates. The class A-1, A-2 and B certificates have paid in full.
The upgrades reflect increased credit enhancement due to scheduled amortization and loan payoffs since Fitch's last rating action. As of the August 2008 distribution date, the pool's aggregate balance has been reduced by 82.0%, to $181.6 million from $1,009.5 million at issuance.
The largest loan Minneapolis City Center (50.5%) has a final maturity date of May 2028. The loan did not pay off at its anticipated repayment date (ARD) of May 2008. The borrower is working to secure financing while additional interest is being capitalized. The property is 90% occupied and had a servicer reported year-end (YE) 2007 debt service coverage ratio (DSCR) of 1.30 times(x). The loan is secured by a mixed use property consisting of 1.1 million square feet (sf) of office space, 370,000 sf of retail, 131,000 sf of storage space, the land on which a 583-room Marriott Hotel is constructed, and a 687-space parking garage.
One loan (2.8%) is currently in special servicing due to maturity default. The asset is secured by a 193,524 sf of retail space in Mundelein, IL a Chicago suburb which matured on May 1, 2008. The property is 93% occupied and had a servicer YE 2007 DSCR of 1.72x.
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