Fitch Affirms KeyBank’s CMBS Servicer Ratings

Fitch Ratings has affirmed several commercial mortgage-backed securities (CMBS) servicer ratings for KeyBank Real Estate Capital (KBREC).

KBREC's primary servicer rating was affirmed at CPS1, its master servicer rating was affirmed at CMS1 and its special servicer rating was affirmed at CSS2+.

In addition, Fitch assigns KBREC a construction loan servicer rating of CCLS3+.

The servicer rating affirmations reflect KBREC's strong, experienced management team, the financial resources of KBREC's parent, KeyCorp; its commitment to commercial mortgage servicing, including its strong employee training program; and its continued commitment to technology, Fitch says.

The primary servicer rating reflects KBREC's demonstrated ability to effectively service CMBS loans. The master servicer rating reflects KBREC's proven ability to report to CMBS trustees and oversee third party primary servicers. The special servicer rating reflects KBREC's continued ability to work out, manage and liquidate nonperforming loans and real estate owned (REO) properties in CMBS transactions.

The construction loan servicer rating reflects KBREC's extensive history of construction loan administration and servicing, its experienced and tenured management and staff, and the financial resources provided by KeyCorp.

Fitch has changed the scale of its construction loan servicer ratings to the numeric scale used for CMBS servicer ratings. KBREC's previous construction loan servicer rating was 'Acceptable'.

As of May 31, KBREC's total commercial mortgage servicing portfolio consisted of 12,587 loans with a principal balance of $132 billion, of which $92.2 billion comprised 9,964 loans were CMBS.

As of the same date, KBREC was named master servicer on 105 CMBS transactions, overseeing 27 primary servicers that serviced 1,211 loans totaling $11.7 billion. Also as of the same date, KBREC was named special servicer on 21 CMBS transactions totaling $13.8 billion and was actively special servicing 91 CMBS loans totaling $411.1 million and two REO properties valued at $2.7 million.

KBREC's total construction loan servicing portfolio consisted of 1,431 projects with an unpaid balance of $8.1 billion and unfunded commitments of $2.1 billion as of May 31. At the same date, its third-party off-book construction servicing portfolio consisted of 37 projects with an unpaid balance of $974 million and unfunded commitments of $242 million.

SOURCE: Fitch Ratings


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