Fitch Takes Ratings Action on Arbor Commercial Mortgage, LLC's CMBS Servicer Ratings

NEW YORK--()--Fitch Ratings has upgraded Arbor Commercial Mortgage, LLC's (Arbor) commercial mortgage-backed securities (CMBS) primary servicer rating to 'CPS2' from 'CPS2-' and affirmed its special servicer rating of 'CSS3+'.

The primary servicer rating is based on Arbor's ability to effectively service commercial mortgage loans with the upgrade driven by improvements to the servicing platform. The special servicer rating reflects the company's ability to effectively manage and liquidate non-performing commercial mortgage loans and real estate owned (REO) assets, as well as its comprehensive reporting capabilities. Both ratings reflect Arbor's extensive real estate experience as a company in servicing commercial real estate and securitized loans. Additionally, Arbor's staff is led by a strong senior management team with extensive industry experience that has instituted solid quality controls.

As of June 30, 2011, Arbor's commercial mortgage primary servicing portfolio consisted of 1,449 loans totaling $7.4 billion and the company was primary servicer with an external master servicer on 19 CMBS loans totaling $158.0 million. As of the same date, the company was the named special servicer on 234 loans totaling $1.7 billion with 24 loans actively in special servicing totaling $451.8 million. The company was also responsible for six REO properties totaling $132.2 million. None of the specially serviced loans are securitized.

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.

Fitch has taken the following rating actions:

Arbor Commercial Mortgage, LLC's

--Primary servicer rating upgraded to 'CPS2' from 'CPS2-';

--Special servicer rating affirmed at 'CSS3+'.

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

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:

U.S. Commercial Mortgage Servicer Rating Criteria

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

Global Rating Criteria for Structured Finance Servicers

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

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Primary Analyst
Howard Miller, +1-212-908-0737
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Stephanie Petosa, +1-212-908-0720
Managing Director
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Howard Miller, +1-212-908-0737
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Stephanie Petosa, +1-212-908-0720
Managing Director
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
Email: sandro.scenga@fitchratings.com