Fitch Ratings has upgraded the commercial mortgage master servicer rating of Prudential Asset Resources(PAR) to 'CMS2+' from 'CMS2' and affirmed the primary servicer rating at 'CPS1' and special servicer rating at 'CSS2-'.
The upgrade of the master servicer rating reflects Fitch's assessment of Prudential's experienced staff, detailed policies and procedures, highly developed and integrated technology, and robust internal control environment. The affirmation of the primary servicer rating also reflects the experienced staff, policies and procedures, technology and internal controls. The special servicer rating is based on the group's experienced asset managers and their ability to workout, manage and liquidate nonperforming loans and real estate owned (REO) properties in CMBS transactions.
Prudential continues to benefit from experienced and tenured management staff to support commercial servicing functions and strong employee training environment which resulted in employees attending an average of 41 hours of training for the 12 months ended March 2012. Each of the ratings take into consideration financial strength of its parent, Prudential Financial, Inc. which Fitch rates 'A-' with a Stable Outlook as of April 19, 2012.
As of June 30, 2012, PAR's total servicing portfolio consisted of 5,496 loans totaling $69.2 billion, of which 945 loans totaling $10.3 billion were CMBS. As of the same date, the company was named master servicer on 26 CMBS transactions consisting of 829 loans totaling $8.9 billion and PAR was overseeing one primary servicer in one CMBS transaction who is responsible for servicing four loans totaling $5 million. Also as of the same date, PAR was named special servicer for nine CMBS loans totaling $757.9 million. At that time, however, PAR was not actively specially servicing any CMBS loans.
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);
--'Fitch Affirms Ratings of Prudential Financial, Inc. and Subsidiaries' (April 19. 2012);
--'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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