Fitch Ratings has affirmed several servicer ratings for commercial mortgage-backed securities (CMBS) servicers Cornerstone Real Estate Advisers LLC and DB Mortgage Services LLC (DBMS).
The rating agency kept Cornerstone's CMBS primary servicer rating at CPS2 and its special servicer rating at CSS2. According to Fitch, the primary servicer rating is based on Cornerstone's ability to effectively service commercial mortgage loans and meet investor reporting requirements. The special servicer rating reflects the company's ability to effectively manage and liquidate nonperforming commercial mortgage loans, as well as its strong research capabilities.
The ratings also reflect the tenure and experience of Cornerstone's management and staff, as well as the financial strength of Cornerstone's parent company, Massachusetts Mutual Life Insurance Co.
As of the end of September, Cornerstone's commercial mortgage primary servicing portfolio consisted of 557 loans totaling $12.5 billion, and the company was the primary and special servicer on six CMBS loans totaling $114.3 million.
Separately, Fitch Ratings has affirmed DBMS' CMBS primary servicer rating at CPS2 and special servicer rating at CSS3+. The ratings are based on the company's increased participation in the CMBS market by way of Freddie Mac's Capital Markets Execution program. The affirmations also factor DBMS' minimal employee turnover over the past three years, and its continued strong focus on staff training. The ratings additionally consider the strength and tenure of senior management, as well as the financial strength of DBMS' parent company, Deutsche Bank.
As of Sept. 30, DBMS' commercial mortgage primary servicing portfolio consisted of 2,148 loans totaling $28.8 billion, of which 49 loans totaling $1.1 billion were CMBS. As of the same date, DBMS was the named special servicer for 46 CMBS loans totaling $1.1 billion and was actively specially servicing 52 non-CMBS loans totaling $409.6 million.