S&P Affirms Ratings on Commercial Mortgage Acceptance Corp. 1997-ML1

Apr 20, 2001, 01:00 ET from Standard & Poor's

    NEW YORK, April 20 /PRNewswire/ -- Standard & Poor's today affirmed its
 ratings on eight classes of Commercial Mortgage Acceptance Corp.'s commercial
 mortgage pass-through certificates series 1997-ML1 (see list).
     The affirmations reflect a mortgage loan pool with increased credit
 support levels due to amortization, offset by the Shilo loans that are being
 specially serviced by CRIIMI MAE. Standard & Poor's calculated the weighted
 average debt service coverage ratio (DSCR) to be 2.14 times (x), based on
 interim and year-end 2000 financial results, an increase from 1.77x at
 issuance.
     As of March 2001, the outstanding pool balance was $811.96 million, down
 from $848.48 million at issuance. The loan pool comprises 15 loans secured by
 first mortgage liens on 59 properties. The properties are geographically
 dispersed throughout seven states, with Pennsylvania (15.4% of loan pool),
 California (15%), Texas (12.9%), and Massachusetts (11.2%), the only states
 exceeding a 10% concentration. The property types in the pool are office
 (31.2% of the loan pool), hotel (27.4%), retail (25.9%), and multifamily
 (15.4%). The largest loan, secured by two retail properties, represents 15.1%
 of the total principal balance, and reported a DSCR of 1.87x. The master
 servicer, Midland Loan Services L.P., provided Standard & Poor's with property
 inspection reports on the 10 largest loans in the pool, which revealed that
 the properties are in good condition with minor deferred maintenance.
     As of March 2001, Midland Loan Services L.P. reported the Shilo loans as
 30-days delinquent (fifth largest loan totaling 9.8% of the loan pool). The
 Shilo loans are crosscollaterized and crossdefaulted. The loans are secured by
 17 full- and limited-service Shilo Inn hotels. The hotels range in size from
 48 rooms to 246 rooms, totaling 2,000 rooms (average loan per room $39,800).
 As of September 2000, the average occupancy was 58%, identical to occupancy at
 issuance. The average revenue per available room was $39.74, a slight decrease
 from $41.01 at issuance. The year-end 2000 DSCR for the loans decreased to
 1.06x from 1.52x at issuance.
     The loans are being specially serviced due to the borrower's repeated
 request for, among other things, debt service relief, the release of one or
 more of the hotels, and the overall decline in performance of the hotels.
 CRIIMI MAE is exploring options with the borrower. Based on discussions with
 CRIIMI MAE, Standard & Poor's does not believe that the delinquent Shilo loans
 will affect the current outstanding ratings. -- CreditWire
 
      OUTSTANDING RATINGS AFFIRMED
      Commercial Mortgage Acceptance Corp.
      Commercial mortgage pass-thru certs series 1997-ML1
      Class       Rating
      A-1         AAA
      A-2         AAA
      A-3         AAA
      A-4         AAA
      B           AA
      C           A
      D           BBB
      E           BBB-
 
 

SOURCE Standard & Poor's
    NEW YORK, April 20 /PRNewswire/ -- Standard & Poor's today affirmed its
 ratings on eight classes of Commercial Mortgage Acceptance Corp.'s commercial
 mortgage pass-through certificates series 1997-ML1 (see list).
     The affirmations reflect a mortgage loan pool with increased credit
 support levels due to amortization, offset by the Shilo loans that are being
 specially serviced by CRIIMI MAE. Standard & Poor's calculated the weighted
 average debt service coverage ratio (DSCR) to be 2.14 times (x), based on
 interim and year-end 2000 financial results, an increase from 1.77x at
 issuance.
     As of March 2001, the outstanding pool balance was $811.96 million, down
 from $848.48 million at issuance. The loan pool comprises 15 loans secured by
 first mortgage liens on 59 properties. The properties are geographically
 dispersed throughout seven states, with Pennsylvania (15.4% of loan pool),
 California (15%), Texas (12.9%), and Massachusetts (11.2%), the only states
 exceeding a 10% concentration. The property types in the pool are office
 (31.2% of the loan pool), hotel (27.4%), retail (25.9%), and multifamily
 (15.4%). The largest loan, secured by two retail properties, represents 15.1%
 of the total principal balance, and reported a DSCR of 1.87x. The master
 servicer, Midland Loan Services L.P., provided Standard & Poor's with property
 inspection reports on the 10 largest loans in the pool, which revealed that
 the properties are in good condition with minor deferred maintenance.
     As of March 2001, Midland Loan Services L.P. reported the Shilo loans as
 30-days delinquent (fifth largest loan totaling 9.8% of the loan pool). The
 Shilo loans are crosscollaterized and crossdefaulted. The loans are secured by
 17 full- and limited-service Shilo Inn hotels. The hotels range in size from
 48 rooms to 246 rooms, totaling 2,000 rooms (average loan per room $39,800).
 As of September 2000, the average occupancy was 58%, identical to occupancy at
 issuance. The average revenue per available room was $39.74, a slight decrease
 from $41.01 at issuance. The year-end 2000 DSCR for the loans decreased to
 1.06x from 1.52x at issuance.
     The loans are being specially serviced due to the borrower's repeated
 request for, among other things, debt service relief, the release of one or
 more of the hotels, and the overall decline in performance of the hotels.
 CRIIMI MAE is exploring options with the borrower. Based on discussions with
 CRIIMI MAE, Standard & Poor's does not believe that the delinquent Shilo loans
 will affect the current outstanding ratings. -- CreditWire
 
      OUTSTANDING RATINGS AFFIRMED
      Commercial Mortgage Acceptance Corp.
      Commercial mortgage pass-thru certs series 1997-ML1
      Class       Rating
      A-1         AAA
      A-2         AAA
      A-3         AAA
      A-4         AAA
      B           AA
      C           A
      D           BBB
      E           BBB-
 
 SOURCE  Standard & Poor's