Fitch Ratings has taken the following servicer rating actions for BNY Mellon (BNYM):
--Commercial primary servicer affirmed at 'CPS2';
--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--Commercial special servicer affirmed at 'CSS3' and withdrawn;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 limited nature of BNYM's special servicing infrastructure and the esoteric nature of the assets it special services. Fitch's loan level special servicer rating is assigned to special servicers that have smaller, specialized staff and portfolio or workout volumes that do not require the staff and technology infrastructure associated with special servicing large volumes of loans.
At Sept. 30, 2014, the company was named special servicer for three CMBS loans with an unpaid principal balance (UPB) of $1.2 billion which was predominantly backed by timberland. Additionally, the company was named special servicer for 99 non-CMBS loans with a UPB of $63.7 million consisting principally of franchise loans. Only four non-CMBS loans with a UPB of $4.6 million were actively special serviced.
The affirmation of the primary and master servicer rating reflects the company's demonstrated ability to effectively service mortgage loans (particularly loans on esoteric assets); its small, experienced servicing team, effective technology infrastructure, and system of quality controls. The affirmations also consider The Bank of New York Mellon Corporations (the bank) long-term issuer default rating (IDR) of 'AA-' with a Stable Rating Outlook.
BNYM's servicing group is part of the bank's corporate trust division and performs master, primary and special servicing functions for commercial mortgage loans on a third party basis. The group, headquartered in Dallas, TX, employs 14 servicing-related employees focused on commercial mortgage primary, master, and special servicing, including CMBS and non-CMBS commercial real estate, asset-backed securities, and franchise servicing.
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:
--'Rating Criteria for U.S. Commercial Mortgage Servicers' (Feb. 14, 2014);
--'Rating Criteria for Structured Finance Servicers' (Jan. 30, 2014).
Applicable Criteria and Related Research:
Rating Criteria for U.S. Commercial Mortgage Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382
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=978929
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