Fitch Expects to Withdraw Berkadia's CMBS Special Servicer Rating

NEW YORK--()--Fitch Ratings expects the special servicer rating for Berkadia Commercial Mortgage LLC ('CSS1-') to be withdrawn upon the closing of KeyBank Real Estate Capital's agreement to acquire the company's CMBS special servicing rights. The company's master and primary servicer ratings are not affected by the sale.

Based on continuing conversations with Berkadia since the announcement, the special servicing portfolio continues to be adequately staffed with asset managers and senior management oversight. After the sale, non-CMBS special servicing operations will be managed by experienced asset management staff in Berkadia's Horsham and Irvine offices.

Fitch placed Berkadia's special servicer rating on Rating Watch Negative due to concerns surrounding the ongoing sustainability of the special servicing platform and asset manager staffing level following a 55% decline in its special servicing portfolio volume. For more detail, see the press release entitled:

'Fitch Maintains Berkadia's CMBS Special Servicer Rating on Negative Watch' dated Feb. 14, 2013.

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 'Rating Criteria for Structured Finance Servicers' dated Feb. 6, 2013, available on Fitch's web site www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

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, +1-212-908-0737
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Adam Fox, +1-212-908-0869
Senior Director
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Howard Miller, +1-212-908-0737
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Adam Fox, +1-212-908-0869
Senior Director
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com