Fitch Affirms Commercial Mortgage Servicer Ratings of Situs Asset Mgmt & Situs Holdings

NEW YORK--()--Fitch Ratings has affirmed the primary servicer rating of Situs Asset Management at 'CPS3+' and the special servicer rating of Situs Holdings, LLC at 'CSS2'.

Situs Asset Management's primary servicer rating is based on improved primary servicing technology, two consecutive years of high turnover, and dated policies and procedures. The company recently converted its primary servicing system of record from Cassiopae to Enterprise!. As a result of the conversion and the transfer of a large servicing portfolio, the company reduced primary servicing staff by 77% and is in the process of updating its policies and procedures to reflect the more streamlined and effective internal processes of Enterprise!. Approximately 22% of Situs' $7.9 billion primary serving portfolio is CMBS loans.

The special servicer rating reflects Fitch's assessment of the experienced asset managers, improved internal controls, and stable technology of Situs Holdings, LLC. Fitch also performed a financial assessment of Situs Holdings and noted the successful integration of the legacy Helios/Situs platforms and improved cash flow profile with good liquidity.

As of Sept. 30, 2012, Situs Asset Management's primary servicing portfolio consisted of 678 non-CMBS loans totaling $7.9 billion. As of the same date, Situs Holdings was named special servicer on 1,841 loans in 13 CMBS transactions totaling $24.2 billion. As of the same date, the company was actively special servicing 137 loans totaling $2.1 billion and was responsible for 35 real estate owned (REO) assets totaling $430.4 million. Situs Holdings, through a subsidiary, also performs asset management and REO disposition services for approximately $2.2 billion of non-performing commercial mortgage loans on behalf of institutional and entrepreneurial investors.

On Oct. 7, 2011, Helios AMC, LLC (Helios) acquired The Situs Companies, including the primary and special servicer Situs Asset Management. The parent of the combined entity is Situs Holdings, LLC. Situs Asset Management operates as the primary servicing arm of the combined entity focusing on advisory, due diligence, valuation, outsourcing, loan services, and debt and equity management. The legacy Helios servicing platform, now known as Situs Holdings, LLC, performs special servicing/asset management services.

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:

Global Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings:
Primary Analyst
Adam Fox, +1-212-908-0869
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
James Bauer, +1-212-908-0343
Associate Director
or
Committee Chairperson:
Daniel Chambers, +1-212-908-0782
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings:
Primary Analyst
Adam Fox, +1-212-908-0869
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
James Bauer, +1-212-908-0343
Associate Director
or
Committee Chairperson:
Daniel Chambers, +1-212-908-0782
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com