Fitch Affirms Voya's Commercial Servicer Ratings

NEW YORK--()--Fitch Ratings has affirmed Voya Investment Management LLC's (Voya) commercial servicer ratings as follows:

--Commercial Primary Servicer rating 'CPS2-';

--Commercial Loan-Level Special Servicer rating 'CLLSS3+'.

The ratings reflect the company's experienced and tenured management team, effective technology infrastructure for primary servicing, long history as a servicer for Voya's North American-based life insurance companies, and the financial support provided by its investment grade parent. The ratings also reflect the company's limited experience with CMBS loans, as well as a more limited internal control framework compared to other highly rated servicers with more frequent internal audits and highly developed policies and procedures. Voya performs multiple SOX reviews for primary servicing, partially mitigating Fitch's concern; however, special servicing has not been included in testing.

The primary servicer rating also reflects Voya's use of correspondents who subservice approximately 80% (by balance) of the commercial mortgage servicing portfolio, as well as the continued high staff-level turnover; Fitch noted that most staff departures were due to retirements and Voya was able to hire additional employees in the servicing and legal groups, partially mitigating Fitch's concern.

The loan-level special servicer rating reflects the special servicing staff made up of experienced senior managers and asset managers shared with primary servicing, the company's historically small special servicing portfolio, and limited technology to support a large volume of specially serviced loans. Fitch noted that while small, the staff and resources available for special servicing are appropriate for Voya's portfolio and Voya continues to make considerable progress implementing Rockport for asset management and special servicing.

Voya is the investment advisor to Voya Financial Inc.'s (Voya Financial) six North American life insurance companies. Voya originates approximately $2 billion of commercial mortgages on behalf of the affiliated life companies annually. Lending activity is mostly generated by a network of correspondents who typically retain primary servicing responsibilities; Voya retains all special servicing responsibilities. Voya's servicing portfolio is almost entirely sourced from relationships with related life insurance companies.

As of Dec. 31, 2015, Voya was responsible for primary servicing 1,115 commercial real estate loans totaling $10.4 billion (inclusive of the 80% correspondent subserviced portfolio) and special servicing four active non-CMBS loans totaling $163.1 million and two real estate owned (REO) assets representing $15.6 million in unpaid balance.

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

Applicable Criteria

Rating Criteria for Structured Finance Servicers ( 23 Apr 2015)

Rating Criteria for U.S. Commercial Mortgage Servicers (14 Feb 2014)

Applicable Criteria

Rating Criteria for Structured Finance Servicers -- Effective Jan. 30, 2014 to April 23, 2015 (pub. 30 Jan 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750

Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005971

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
James Bauer
Director
+1-212-908-0343
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Andrew Foster
Director
+1-212-908-0714
or
Committee Chairperson
Brook Sutherland
Senior Director
+1-312-606-2346
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
James Bauer
Director
+1-212-908-0343
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Andrew Foster
Director
+1-212-908-0714
or
Committee Chairperson
Brook Sutherland
Senior Director
+1-312-606-2346
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com