Fitch Affirms Torchlight Loan Services' CMBS Special Servicer Ratings

NEW YORK--()--Fitch Ratings affirms Torchlight Loan Services, LLC's (Torchlight) commercial mortgage-backed securities (CMBS) special servicer rating of 'CSS2'. Fitch's assessment reflects the company's experienced asset managers, continued high turnover, and multiple layers of internal controls. Torchlight Investors (previously ING Clarion Capital) was formed in 1995 to provide investment management services to institutional clients seeking exposure to commercial real estate debt markets.

Torchlight performs special servicing predominantly for Torchlight Investors but will selectively perform third party servicing. The company's named special servicing portfolio, which is made up of typical conduit CMBS transactions, has grown from 19 CMBS transactions in 2010 to 27 transactions as of year-end 2012 through a combination of investments on behalf of Torchlight Investors and its affiliates as well as a third party appointment. Of the 27 transactions in Torchlight's special servicing portfolio, five are CMBS 2.0 transactions issued in 2011 or later.

As of Sept. 30, 2012, Torchlight's total servicing portfolio was comprised of 2,714 CMBS loans with an unpaid principal balance of $32.1 billion in 27 transactions. As of the same date, the company was actively special servicing 158 loans totaling $2.8 billion and managing 38 real estate owned (REO) assets with an underlying loan balance of $335.9 million.

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

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
Adam Fox, +1-212-908-00789
Senior Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Daniel Chambers, +1-212-908-0782
Managing Director
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Adam Fox, +1-212-908-00789
Senior Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Daniel Chambers, +1-212-908-0782
Managing Director
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com