Three classes of MeriStar Commercial Mortgage Trust commercial mortgage pass-through certificates, series 1999-C1, have been downgraded by Moody's Investors Service.The downgrades were as follows: class B, from Aa3 to A3; class C, from Baa1 to Ba1; and class D, from Ba1 to B2. In addition, Moody's confirmed the ratings of three classes in the same transaction. The rating agency attributed the downgrades to poor pool performance. The principal asset of the trust is a mortgage loan secured by 19 hotel properties located in 10 states. As of the Oct. 5 distribution date, the transaction's principal balance has decreased by approximately 7.9%, from $330.0 million to $304.0 million, as a result of amortization, Moody's said. The properties are owned by entities associated with MeriStar Hospitality Corp., which owns 79 primarily upscale hotels in 23 states. "In spite of recovery in many hospitality markets, performance at the collateral properties continues to decline," Moody's said, citing in particular the Somerset (N.J.) Marriott, the Hilton Sacramento (Calif.), and the Crowne Plaza San Jose (Calif.).
-
The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
3h ago -
The publicly traded title holding companies all had stronger earnings as the mortgage market improved from one year prior.
4h ago -
One in every 37 residential properties nationwide had a loan-to-value ratio of 125% or greater to begin the year, according to a new report.
5h ago -
There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
5h ago -
Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
7h ago -
Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
May 10