Fitch Ratings upgrades Bank of America Merrill Lynch's (formerly, Bank of America) CMBS primary and special servicer ratings as follows:
--Primary servicer rating to 'CPS1' from 'CPS1-';
--Special servicer rating to 'CSS2' from 'CSS2-'.
In addition, Fitch affirms Bank of America Merrill Lynch's master servicer rating at 'CMS2+'.
The servicer ratings are based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated June 19, 2009, and 'Global Rating Criteria for Structured Finance Servicers' dated Sept. 30, 2009, available on Fitch's web site 'www.fitchratings.com'.
The primary servicer rating upgrade is based on Bank of America Merrill Lynch's experienced management and staff, its strong use of technology and the expansion of its comprehensive quality assurance program. The special servicer rating upgrade reflects the bank's demonstrated ability to manage the increase in its active special servicing portfolio, the strong depth of bank resources such as underwriting and valuation services, and the real estate bench strength of employees throughout the bank. The master servicer rating reflects Bank of America Merrill Lynch's proven ability to oversee third-party servicers and report and remit to CMBS trustees. Each of the ratings is also based on the financial strength of Bank of America and its commitment to commercial mortgage servicing.
As of Sept. 30, 2009, Bank of America Merrill Lynch's total commercial mortgage primary servicing portfolio consisted of 9,764 loans totaling $131.5 billion of which 5,388 loans totaling $122.2 billion were CMBS. As of the same date, the bank was named master servicer for 49 CMBS transactions and oversaw 17 external primary servicers that serviced 1,283 loans totaling $13.6 billion. As of Sept. 30, 2009, the bank was the named special servicer for 15 CMBS transactions consisting of 203 loans totaling $20.4 billion and was actively special servicing 13 CMBS loans totaling $707 million. Also at that date, the group was special servicing 29 non-CMBS loans totaling $367 million and was responsible for two non-CMBS REO properties valued at $16 million.
Fitch rates commercial mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating.
Additional information is available at 'www.fitchratings.com'.
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