Fitch Assigns Initial CMBS Special Servicer Rating to Rialto Capital Advisors, LLC

NEW YORK--()--Fitch Ratings assigns Rialto Capital Advisors, LLC (RCA) an initial commercial mortgage-backed securities (CMBS) special servicer rating of 'CSS2-'. RCA is a wholly owned subsidiary of Rialto Capital Management, LLC (Rialto), which is a subsidiary of Lennar Corporation.

RCA's special servicer rating is based on Fitch's assessment of RCA's management team, asset management capabilities, investment in technology, and ability to leverage its parent Lennar Corporation.

As of March 31, 2012, RCA's active special servicing portfolio encompassed 6,971 loans totaling $4.4 billion of unpaid principal balance (UPB). Included within are 2,075 real estate owned (REO) assets representing approximately $2 billion UPB. About 64% of the loans are on vacant land (46%) or residential properties (18%). In March 2012 RCA was named asset manager of Rialto Capital, Series 2012-LT1, which included 271 performing and nonperforming mortgages securing 266 properties, 11 unsecured loans, and 38 properties acquired through foreclosure.

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:

Global Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305

U.S. Commercial Mortgage Servicer Rating Criteria

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

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Contacts

Fitch Ratings
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com
or
Primary Analyst:
Howard Miller, +1-212-908-0737
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Adam Fox, +1-212-908-0782
Senior Director
or
Committee Chairperson:
Christopher Bushart, +1-212-908-0606
Senior Director

Contacts

Fitch Ratings
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com
or
Primary Analyst:
Howard Miller, +1-212-908-0737
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Adam Fox, +1-212-908-0782
Senior Director
or
Committee Chairperson:
Christopher Bushart, +1-212-908-0606
Senior Director