The commercial mortgage-backed securities (CMBS) servicer ratings of Capmark Financial Group
remain on Fitch Ratings
' “evolving” watch amid financial hardship at the commercial real estate lender.
Fitch downgraded Capmark's issuer default rating to single-D from single-C after the company filed for Chapter 11 bankruptcy
in a reorganization effort in the wake of posting a $1.6bn loss in Q209.
On Sept. 2, 2009, Capmark announced a put option agreement to sell its servicing and origination operations to Berkadia Commercial Mortgage – a partnership between William Buffet's Berkshire Hathaway
and Leucadia National Corporation (LUK)
. Berkadia indicated to Fitch that it expects to retain all of Capmark’s servicing staff, according to a Fitch report.
Fitch will continue to monitor Capmark’s servicing quality and said it may downgrade, upgrade or affirm its CMBS servicer ratings when or if the Berkadia purchase is completed. According to Fitch, Capmark has shown that it has enough liquidity to fulfill short-term obligations. Fitch does not expect any ratings action or disruption on the CMBS transactions serviced by Capmark.
At the end of June, Capmark’s total servicing portfolio swelled to 35,507 loans with $270.1bn in unpaid principal balance. Of the total portfolio, 16,712 loans worth $131.1bn were CMBS, according to Fitch.
Write to Jon Prior