Fitch Maintains Berkadia's CMBS Special Servicer Rating on Negative Watch

NEW YORK--()--Fitch Ratings maintains Berkadia Commercial Mortgage LLC's (Berkadia) special servicer rating of 'CSS1-' on Rating Watch Negative reflecting continued concerns surrounding the ongoing sustainability of the special servicing platform and asset manager staffing level. Berkadia's primary and master servicer ratings are not affected. In December, Berkadia eliminated six asset managers and seven additional positions within special servicing reducing its staff to 45 employees including 16 engaged in special requests.

Fitch expects to resolve the Rating Watch Negative in June 2013 following a full operational risk review of Berkadia when more information regarding the company's efforts to stabilize its special servicing platform is obtained. Fitch does not expect the special servicer rating to change by more than one notch.

The special servicer rating was placed on Rating Watch Negative when Berkadia experienced a 55% decline in its special servicing portfolio volume due to the termination of a sub-servicing agreement with CWCapital. For more detail, see the press release entitled: 'Fitch Affirms Berkadia's CMBS Servicer Rtgs; Special Servicer Rtg Placed on Negative Watch' dated Aug. 14, 2012.

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);

--'Rating Criteria for Structured Finance Servicers' (Feb. 6, 2013).

Applicable Criteria and Related Research:

U.S. Commercial Mortgage Servicer Rating Criteria

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

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699690

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Contacts

Fitch Ratings
Primary Analyst
Howard Miller
Director
+1-212-908-0737
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Adam Fox
Senior Director
+1-212-908-0869
or
Committee Chairperson
Daniel Chambers
Managing Director
+1-212-908-0782
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Howard Miller
Director
+1-212-908-0737
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Adam Fox
Senior Director
+1-212-908-0869
or
Committee Chairperson
Daniel Chambers
Managing Director
+1-212-908-0782
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com