Fitch Ratings has affirmed several commercial mortgage-backed securities (CMBS) servicer ratings for Midland Loan Service. Midland's primary rating was affirmed at CPS1, its master rating was affirmed at CMS1 and its special servicer rating was affirmed at CSS1.
The ratings reflect Midland's extensive CMBS experience, strong performing loan servicing technology, and its experienced, tenured senior management team, Fitch says.
Midland has experienced significant growth in its active special servicing portfolio, which has increased 42% by asset count since Dec. 31, 2008. This contributes to Fitch's industry-wide concern that CMBS special servicers may be unable to maintain servicing quality while experiencing rapid growth.
Some of the initiatives discussed during the review, including further development of special servicing-focused technology, will assist Midland in meeting the challenges of an expanding portfolio, including meeting the many requests for information, Fitch adds.
As of the end of the second quarter, Midland's U.S. commercial mortgage loan servicing portfolio consisted of 23,962 loans totaling $237.9 billion, and its U.S. CMBS servicing portfolio totaled $132.6 billion encompassing 13,539 loans in 311 CMBS transactions.
Midland was actively special servicing 577 loans totaling $8.3 billion and was responsible for 29 CMBS real estate owned assets valued at $101.3 million, as of the end of the second quarter.
SOURCE: Fitch Ratings