NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions:
Protective Life Insurance Co. (Protective Life):
-- Commercial primary servicer affirmed at 'CPS3+';
-- Commercial master servicer affirmed at 'CMS3';
-- Commercial special servicer affirmed at 'CSS3+' and withdrawn;
-- Commercial loan level special servicer rating assigned at 'CLLSS3+'.
The assignment of a loan level special servicer rating and simultaneous affirmation and withdrawal of the conduit special servicer rating reflects the shared staffing structure of Protective Life's special servicing group. The ratings also reflect the role experienced senior managers play in directing workouts, and the lack of technology to perform special servicing for a large volume of defaulted loans.
Fitch's loan level special servicer rating is assigned to special servicers that typically have smaller, specialized staff and portfolios or workout volumes that do not require the staff and technology infrastructure associated with special servicing large pools of loans.
Special servicing staff averages nine years of industry experience and four years of tenure with the company, and experienced high turnover of 50%, a continued trend from the last review. While Fitch notes as a concern the limited years of experience and the continued turnover of special servicing staff level employees, the special servicing group has two senior managers who average 26 years of experience and act as the lead for most work outs and actively monitor the supporting staff, composed of three portfolio analysts and one paralegal.
The servicer ratings reflect Fitch's assessment of Protective Life's ability to service commercial real estate loans, its experienced and stable management team, financial support of its parent, and adequate internal controls. The primary and master servicer ratings also reflect the company's limited experience servicing loans with cash management features and overseeing independent primary servicers, as well as a stronger reliance on manual processes compared to other rated servicers. The rating also considers Protective Life's reliance on correspondents for subservicing, and Dai-ichi Life Insurance Company, Ltd.'s recent announcement of its intent to acquire Protective Life.
The servicer rating is based on Fitch's methodology, as described in the reports highlighted at the end of the press release.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
-- 'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 14, 2014);
-- 'Rating Criteria for Structured Finance Servicers' (Jan. 30, 2014).
Applicable Criteria and Related Research:
U.S. Commercial Mortgage Servicer Rating Criteria -- Effective Feb. 18,
2011 to Feb. 14, 2014
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=731750
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=861494
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