Fitch Ratings upgrades Hudson Advisors LLC's commercial mortgage-backed securities (CMBS) primary servicer rating to 'CPS3+' from 'CPS3' and special servicer rating to 'CSS2' from 'CSS2-'.
The primary servicer rating is based on the company's ability to service commercial mortgage loans, the highly seasoned management and staff, and its strong technology. The special servicer rating reflects Hudson's continued ability to workout, reposition, manage and liquidate commercial real estate loans and assets. The upgrades reflect new proprietary servicing technology imported from Hudson Advisors' German affiliate and the hiring of experienced employees to manage a larger CMBS and commercial real estate portfolio. Additionally, Fitch took into account Hudson's history with its affiliate Lone Star Funds and its fund raising track record through the economic cycles.
Hudson Advisors was named as the special servicer on three CMBS deals in 2011, one of which was securitized by Lone Star (L-STAR 2011-1). In the other two deals Lone Star bought the Class A tranche of each trust and replaced the existing special servicer with Hudson.
As of Sept. 30, 2011, Hudson was named special servicer for 700 loans in three CMBS transactions totaling $860.4 million, and was actively specially servicing 93 CMBS loans totaling $100.1 million and six REO. In addition, the company was named special servicer on 541 non-CMBS loans with $2.2 billion unpaid principal balance and was actively servicing 442 non-CMBS loans and 99 REO.
The servicer rating is based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 18, 2011, and 'Global Rating Criteria for Structured Finance Servicers' dated Aug. 16, 2010, available on Fitch's web site 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'U.S. Commercial Mortgage Servicer Rating Criteria' Feb. 18, 2011;
--'Global Rating Criteria for Structured Finance Servicers' Aug. 16, 2010.
Applicable Criteria and Related Research:
U.S. Commercial Mortgage Servicer Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005
Global Rating Criteria for Structured Finance Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305
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