NEW YORK--(BUSINESS WIRE)--Fitch Ratings places Situs Asset Management's (Situs) commercial mortgage-backed securities (CMBS) special servicer rating of 'CSS3+' on Rating Watch Positive. Fitch views the recent acquisition of The Situs Companies by Helios AMC, LLC (Helios) as a positive for the new entity.
On Oct. 7, 2011 Helios announced that it had acquired The Situs Companies, the parent company to Situs Asset Management. The combined company will operate under the name 'The Situs Companies.' Prior to the acquisition, Helios was rated 'CSS2' by Fitch and brings strong asset management and workout experience to the platform.
As of June 30, 2011, Situs was named special servicer on two CMBS transactions totaling $133.1 million and was not actively working out CMBS loans. As of the same date, Helios was the named special servicer for 13 CMBS transactions with 2,010 loans totaling $26.9 billion. Also as of the same date, Helios had 185 loans in special servicing totaling $3.3 billion and was actively working out 23 REO properties totaling $272.7 million.
The combined platform will integrate the senior management of both companies and will be headquartered in Houston, TX with 12 additional offices located across the United States and in Europe. Fitch will continue to monitor the ongoing merger of the two entities and its affect on the primary and special servicing capabilities of the new firm. Fitch expects to resolve the Rating Watch Positive over the next 90 days and is likely to affirm the primary servicer rating following a full operational review.
Fitch has taken the following rating actions:
Situs Asset Management
--Special servicer rating of 'CSS3+' placed on Rating Watch Positive.
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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