Fitch Tightens CMBS and Downgrades 10 Companies

Fitch ratings updated its ratings criteria for commercial-mortgage backed securities (CMBS) to greater reflect the ongoing disruption in the commercial real estate (CRE) market. As a result, 10 companies were downgraded due to increased requirements for servicers weighings, financial strength, staff experience, and perhaps most importantly — activity in CRE this year. The final point is interesting to note as, with the structuring of US CMBS, short term note roll over is a present challenge as continued financing dries up. Please see the upcoming July issue of HousingWire magazine for a full feature on the CMBS/CRE markets in the United States. Downgrades were taken on servicers Archon Group, Centerline Servicing, CT Investment Management, Hudson Advisors, J.E. Robert Companies, LNR Partners, NCB, FSB, Ocwen Loan Servicing, Wachovia Securities and Wells Fargo Bank. Fitch affirmed all of the servicer ratings for the following companies Babson Capital, Bank of America, DB Mortgage Services, GE Capital Realty Group, GEMSA Loan Services, Helios AMC, ING Clarion Capital Loan Services, KeyBank Real Estate Capital, Midland Loan Services, National Cooperative Bank, ORIX Capital Markets, Pacific Life Insurance Company, Protective Life Insurance Company, Prudential Asset Resources, Situs Asset Management, TriMont Real Estate Advisors Upgrades were given to CWCapital, CWCapital Asset Management and The Bank of New York Mellon – Asset Solutions Division, where the residential servicing rating also received an upgrade. Write to Jacob Gaffney.

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